self-help groups in india: a tool for empowering rural women and

Transcription

2014-2015
SELF-HELP GROUPS IN INDIA: A TOOL FOR
EMPOWERING RURAL WOMEN AND ERADICATING
POVERTY?
ANALYSIS OF THE SITUATION IN
KARNATAKA STATE
Natalia Gabriela Molina Navas
Promoter: Prof. Gianluca Brunori
Thesis submitted in partial fulfilment of the requirements for the joint academic degree of
International Master of Science in Rural Development from Ghent University (Belgium),
Agrocampus Ouest (France), Humboldt University of Berlin (Germany), Slovak University
of Agriculture in Nitra (Slovakia) and University of Pisa (Italy) in collaboration with
Wageningen University (The Netherlands).
This thesis was elaborated and defended at Pisa University, Faculty of Agriculture, food and agro
– environmental science, Italy within the framework of the European Erasmus Mundus
Programme “Erasmus Mundus International Master of Science in Rural Development" (Course
N° 2010-0114 – R 04018/001)
Certification
This is an unpublished M.Sc. thesis and is not prepared for further distribution. The author and the
promoter give the permission to use this thesis for consultation and to copy parts of it for personal
use. Every other use is subject to the copyright laws, more specifically the source must be
extensively specified when using results from this thesis.
The Promoter(s)
The Author
Prof. Gianluca Brunori
Gabriela Molina N.
Thesis online access release
I hereby authorize the IMRD secretariat to make this thesis available on line on the IMRD website.
The Author
Gabriela Molina N.
i
Acknowledgments
Thanks so much to my Promoter, Prof. Gianluca Brunori
from Pisa University who was always open to share his knowledge
and guide me in this process with patient, wisdom and positivism.
Thanks to my friends and their families that were a great support
during the data collection in India, without their help and care, for
sure this study had not been possible. Thanks to my dear family that
every day sent me their best energy and blessings even being far
away. And last but the most important, thanks to my loved GOD that
was next to me every moment clarifying my thoughts and putting
special people in my road of which I have learned lots.
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Abstract
This paper has been executed to answer if the women that join a Self-Help Group are more
empowered than the ones that are not members of any group. It starts understanding that women's
empowerment refers to the process by which those who have been denied the ability to make
strategic life choices acquire such an ability. In order to achieve this empowerment, financial
assistance is being provided to women’s SHGs as a powerful instrument for poverty alleviation to
increase their well-being, their access to resources and credit, their self-confidence, self-esteem
and their creditability in all aspects of life. A Self-Help Group is a voluntary and self-managed
group of poor women belonging to similar socio-economic conditions who save a certain amount
contributing to a common fund from which small loans are given to the members for meeting their
productive and emergent needs. This model emerged in the 1980s and 1990s with the support of
the government of India, state governments, National Bank of Agriculture and Rural Development
(NABARD), the banking sector and NGOs and it has spread in the entire country especially in
rural areas where 70% of India’s 1.2 billion population live without access to productive assets
and financial resources, with high levels of illiteracy, inadequate health care and limited access to
social services. The aim of this paper is to examine the benefits of these groups in the socioeconomic development of poor rural women and analyze their empowerment status in Karnataka
state. For meeting the objectives primary data was collected through a case study with a structured
questionnaire and personal observations in two villages located in the districts of Mandya and
Hassan. The investigation found that women from the SHG have an easier access to credits based
on the philosophy of peer pressure and group savings as collateral. The empirical findings suggest
that there are not major differences in the level of empowerment between members and not
members. Even though women from the SHG show some improvements in the areas like decision
making, mobility, and self-esteem, disparities continue in income/assets control and awareness
levels.
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Table of contents
Introduction ………………………………………………………………………………..…… 1
CHAPTER I: LITERATURE REVIEW …………………………………………………...… 4
I. EMPOWERMENT ………………………………………………………………………….... 4
1.1. Women empowerment ………………………………………………………….……..…. 4
1.2. Comments’ review ………………………………………………………………….…… 7
II. SELF-HELP GROUPS ………………………………………………………………………. 8
2.1. Positive evidence ………………………………………………………………………… 9
2.2. Negative evidence ………………………………………………………..……….…….. 10
CHAPTER II: SELF-HELP GROUPS IN INDIA ……………………………………….… 13
I. INDIA-THE SUBCONTINENT ……………………………………………………..….….. 13
1.1. Society ……………………………………………………………………………….…. 13
1.2. Education ……………………………………………………………………….….…… 14
1.3. Poverty …………………………………………………………………………..……… 15
1.4. Gender …………………………………………………………………………..……… 17
1.5. Economy …………………………………………………………………….……..…… 18
1.6. Agriculture ………………………………………………………………….………...… 19
1.6.1. Women in agriculture …………………………………………………………….. 20
1.6.2. Women’s development: the world’s challenge …………………………………… 21
II. THE SELF-HELP GROUPS: THE TOOL OF INDIA FOR ERADICATING
POVERTY AND EMPOWERING WOMEN …………………………………….………… 22
2.1. Five year plans …………………………………………………………………………. 23
2.2. Origin of the groups …………………………………………………….………….…… 23
2.3. SHGs’ models …………………………………………………………………..….…… 24
2.4. Stages of the SHGs’ creation ………………………………………………….………… 25
2.5. Characteristics of the SHGs …………………………………………………….…….… 25
2.6. Importance of the SHGs ……………………………………………………..…..……… 26
2.7. Functions of the SHGs ……………………………………………………………..…… 27
2.7.1. Savings …………………………………………………………………….…..…. 27
2.7.2. Internal lending ………………………………………………………………..…. 28
2.7.3. Discussion of problems ………………………………………………….……..… 29
2.8. Rules of the SHGs ……………………………………………………………….…...…. 29
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2.9. Spread of the movement ……………………………………………………………….... 29
2.10. Lenders of the SHGs ……………………………………………………….…..……… 32
2.11. Rules of lending …………………………………………………………………..…… 34
2.12. Advantages and disadvantages of the SHGs ………………………………...………… 35
2.13. Successful stories of the SHGs …………………………………………………...…… 37
2.14. Future plans of the SHGs ………………………………………………………….…... 39
CHAPTER III: CASE STUDY ……………………………………………………….……… 41
I. THE METHOD ……………………………………………………………………………... 41
1.1. Need of the study ……………………………………………………….……………… 44
1.2. Area of study ……………………………………………………………………….…… 44
II. METHODOLOGY ……………………………………………………………………..…… 47
2.1. Questionnaire …………………………………………………………………………… 47
2.2. Surveys ………………………………………………………………….……………… 48
2.3. Data Analysis …………………………………………………………………………… 50
2.4. Limitations ……………………………………………………………….……….…….. 50
CHAPTER IV: RESULTS AND DISCUSSION ……………………………...…………….. 51
I. SURVEY FINDINGS ……………………………………………………………………….. 51
1.1. Description of the sample ………………………………………………...……………. 51
1.2. Common patterns …………………………………………………………………...….. 54
1.3. Main findings ……………………………………………………………………...…… 54
A. General information ………………………………………………………………… 54
B. Economic situation ……………………………………………………….…………. 57
C. Farming information …………………………………………………...…………… 57
D. Self-Help Groups …………………………………………………………….……… 59
E. Women empowerment ……………………………………………………………… 62
1.4. Analysis of the findings ………………………………………………..………………. 69
1.5. General observations …………………………………………………………...………. 76
II. QUALITATIVE ANALYSIS ……………………………………………………………….. 76
2.1. Women’s stories …………………………………………………….………………….. 77
2.1.1. Bommanayakanahalli village ………………………………………………..…… 77
2.1.2. A Chalenahalli village ……………………………………………….…………… 79
2.1.2.1. Typical life stories within the group ……………………………..……… 84
2.1.2.2. Things to improve ………………………………………...…………….. 86
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CHAPTER V: CONCLUSIONS ………………………………………………….………… 88
Bibliography …………………………………………………………………………….…….. 95
Annexes …………………………………………………………………………………….… 102
A. Questionnaire …………………………………………………………………………….… 102
B. Semi structured questionnaire ……………………………………………………………… 105
C. Photos of the villages………………………………………………………………..……… 107
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List of tables
Table No. 1: Indian trade partners …………………………………………………….……….. 19
Table No. 2: Daily salary in agricultural activities ………………………………………..…… 21
Table No. 3: Savings of women’s SHGs …………………………………………………….… 28
Table No. 4: SHGs in India ………………………………………………………………….… 31
Table No. 5: Progress of the SHG movement ………………………………………...……….. 31
Table No. 6: Region-wise savings balance per SHG …………………………………..………. 32
Table No. 7: Loans disbursed to SHGs …………………………………………………....…… 32
Table No. 8: Region-wise analysis during 2013-14 …………………………………………… 34
Table No. 9: Advantages and disadvantages of SHG’s ……………………..…….…………… 35
Table No. 10: Main information of the districts …………………………………….…………. 46
Table No. 11: Main activities of the women ……………………………………….………….. 52
Table No. 12: Family size of the sample ……………………………………….……………… 55
Table No. 13: Average land size in the villages ……………………………...………….…….. 57
Table No. 14: Livestock products’ income ……………………………………………..……… 59
Table No. 15: Quantity of women’s savings per week (Rs.) ……………………...……..…….. 62
Table No. 16: Decisions’ taker …………………………………………………….……..……. 63
Table No. 17: Summary of the main findings …………………………………………………. 67
Table No. 18: Main differences of loans between the villages ………………………...………. 70
Table No. 19: Income receiver in the households …………………………………...………… 72
Table No. 20: Women’s working time per day …………………………….……..…………… 74
Table No. 21: Main information of the SHG ………………………………………..…………. 82
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List of figures
Figure No. 1: Women empowerment framework ……………………………………………….. 6
Figure No. 2: Model for women empowerment through agriculture …………………...………. 7
Figure No. 3: Difference literate levels within the country ……………………………………. 15
Figure No. 4: Poorest states in India ………………………………………………………….... 16
Figure No. 5: Beginning of the SHG’s-BLP in India ………………………..………………… 24
Figure No. 6: Main benefits of the SHGs ………………………………………………...……. 27
Figure No. 7: SHG coverage …………………………………………………………………… 30
Figure No. 8: Bank loans disbursement to SHGs …………………………………..………….. 33
Figure No. 9: SHG in dairy business …………………………………………………...……… 37
Figure No. 10: SHG in India …………………………………………………………………… 38
Figure No. 11: Map of Karnataka state ………………………………………………………… 45
Figure No. 12: Education level of the sample …………………………………………………. 51
Figure No. 13: Education level of the members ………………………………..……………… 56
Figure No. 14: Main sources of income ……………………………………………………….. 56
Figure No. 15: Main crops in the villages ………………………………..……………………. 57
Figure No. 16: Main reasons to join to the SHG ………………….…………………………… 61
Figure No. 17: Women holding a bank account ……………………………..………………… 63
Figure No. 18: Women’s control over loans …………………………..…………….…………. 71
Figure No. 19: Free time among women ………………………………….…………………… 73
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Abbreviations and acronyms
APMAS
Andhra Pradesh Mahila Abhivruddhi Society
BLP
Bank Linkage Program
CEDAW
Convention on the Elimination of All Forms of Discrimination against Women
CSWB
Central Social Welfare Board
DES
Department of Economics and Statistics
DRDAs
District Rural Development Agencies
DWCRA
Development of Women and Children in the Rural Areas
FAO
Food and Agriculture Organization of United Nations
GDP
Gross Domestic Product
GOI
Government of India
ICRW
International Center for Research in Women
IFPRI
International Food Policy Research Institute
IMF
International Monetary Fund
MFI
Micro Finance Institutions
MYRADA
Mysore Resettlement and Development Agency
NABARD
National Bank for Agriculture and Rural Development
NGO
Non-Governmental Organization
RIDE
Rural Institute for Development Education
RRB
Regional Rural Banks
SEWA
Self Employed Women's Association
SHARE
Society for Health Awareness and Rural Enlightenment
SHG
Self-Help Group
UN
United Nations
UNCTAD
United Nations Conference on Trade and Development
UNDP
United Nations Development Program
UNIFEM
United National Development Fund for Women
VOICE
Voluntary Operation in Community and Environment
WEAI
Women Empowerment in Agriculture Index
ix
INTRODUCTION
In the last decades, the concept of women empowerment has changed from welfare to
equity approach by which the powerless gain control over their lives and resources to overcome
external barriers (lack of health, mobility, education and awareness, status in the family,
participation in decision making) and gain internal qualities such as self-awareness and selfconfidence (Mathew, 2003, p. 24). In this way, women’s empowerment has become a pre requisite
for the socio-economic development of any community in the process of change.
In all the developing countries including India, poor rural people face with illiteracy, lack
of skills, health care, etc. These are problems that cannot be tackled individually and can be solved
through group efforts. Today, this collective action is known as Self-Help Groups, considered the
vehicle of change for the poor, mostly for marginalized women.
The SHG is a method of organizing the poor rural women to come together to solve their
problems as a group. Here, women collect their savings and put it in a bank. In return, they can
access to loans with a small rate of interest with the main objective to start a micro-enterprise. It
is formed with 15-20 members living in a particular locality. Thousands of poor and marginalized
women in India are building their lives and societies through these groups. Indeed, this movement
has become important for the financial services delivery but also for the livelihoods’ promotion,
community development and women’s empowerment.
In India, the massive movement of these groups started during 1991-1992 when NABARD
piloted the SHG-bank linkage program providing access to banking services to poor rural
households, especially women. This is the indigenous model of micro-credit evolved in this
country and has been widely acclaimed as a successful one. Some NGOs are the leaders in forming
the groups, but also the financial service promoters are currently associated with the program as
well as the government that has launched projects and schemes of savings and credit to alleviate
poverty in the country. The 12th five year plan of the Indian government recognizes the importance
and relevance of such groups that are useful to implement developmental schemes at the grassroots
level for reaching the poor and strengthen their collective capacities.
At the national level, the growth of this movement is impressive in terms of quantity as
well as loans disbursed. Notwithstanding this remarkable progress, there is a wide regional
disparity. In March 2014, 64% of the total number of the SHGs were in the Southern Region while
1
the share of North-Eastern Region was just 3%, which can be an indicator that the program has
not taken the adequate roads for achieving those women where the poverty rate is higher.
The initial idea with the creation of the SHGs was to empower women economically and
socially, so they can become more confident, more assertive, and more likely to participate in
family and community decisions. However, some of these groups have behaved just as “loans’
providers” without paying attention to the self-development of the members. Poor women suffer
from malnutrition, illiteracy, unemployment, lack of awareness and healthcare, so how can they
be empowered if they have no education, if they are not ready to take decisions, if they have no
secure income and if they suffer from violence? Are the group benefits significant enough to
continue with it? Why these kind of programs target women, because they are the motor of growth
or because they are more financially responsible than men? With all these doubts it looks like the
success of this group approach in rural women’s development sounds “too good to be true”, so
there is the necessity to clarify if these groups are sustainable and if they are meeting their
objectives. For this, the proposed research question that this study attempts to answer is: Are the
women from a Self-Help Group more empowered than the ones that are not members of any
group? Is the movement benefiting them?
Since 1991, when India became part of the global economy, it has been growing at a faster
rate becoming the ninth largest economy in the world (World Bank, 2014, p. 1). However, poverty
is still an issue that the government is trying to abolish. The politicians and policy makers have
realized that without empowering women the development of human beings is not possible and
for that the society has to recognize women as one among the social partners, provide they rights,
equal education, health and allow them to participate equally in all aspects of life.
In view of the above, there is the need to explore the impact that SHGs have in poor rural
women what can lead to some amendments of the different existing policies. Making a comparison
of two villages, one with a SHG and another without it, the objectives of this research are to
understand how the SHGs function in India; analyze the effect they have in empowering poor
women; and determine the social improvements the members have had being part of the group.
Even though there are a lot of studies attempting to measure empowerment making comparisons
between locations or over time to demonstrate the impact of specific interventions and the
implications of some policies, this study differs among them trying to go beyond the economic
indicators and paying attention on the behavior and community changes that poor rural women
have achieved.
2
This investigation was done in Karnataka state, one of the pioneers to initiate with SHG
activities where the development of the linkage program is far ahead of most other states in terms
of the number of groups formed as well as loans disbursed. Hence, to answer the research questions
this work examines the status and impact of the SHGs based on a sample of 50 women in 2 villages
of 2 districts of the state, one of them with a SHG and the other without it. For this purpose
empirical data from the two districts was collected and analyzed during March and April of 2015.
Secondary data published by NABARD, local official statistics, census materials, and interviews
with the rural women were also considered.
The starting point of this research was the review of relevant literature about the women
empowerment and Self-help Groups which can be found in chapter I. The next chapter gives the
reader a general view of India, how the SHGs are formed, their main characteristics and functions
and some successful examples of this movement. Later on the case study is presented showing the
methodology used for the collection of primary data, as well as the questionnaire development, the
study area, the sampling technique, the interview strategy, and the limitations of the study. Next
in chapter IV the key findings are discussed comparing the SHG’s members and non-members in
order to find economic and social differences related with empowerment. Finally, conclusions and
recommendations are done. With this study the reader is invited to start the discussion on these
issues providing a critical view of the situation.
3
CHAPTER I
LITERATURE REVIEW
I.
EMPOWERMENT
The concept of empowerment started during the civil rights movement in the United
States in 1960. Since then, it has been interpreted in different ways as a bottom-up process
and an outcome; being subjective and objective, personal and collective, internal and external,
global and local. Even though it is complex, today it is used in sectors such as business, social
work, development, and gender equality (Berg, 2004, p. 60).
1.1.
Women empowerment
Gender equality is considered the milestone of development because when
women and men are equal in the society, the economy and health of the family
improves reducing poverty. However, women are still considered inferior than men in
most countries of the world (Rowlands, 1997, p. 7).
o Concept
Although there is not a fixed meaning of women empowerment, it is in
almost every development project. A review of the literature shows the following
definitions:
“Empowerment is more than participation in decision-making. It must also include
the processes that lead people to perceive themselves as able and entitled to make
decisions” (Rowlands et al., 1997, p. 14).
For Rowlands, there are three dimensions of empowerment:
a. Personal: sense of self and individual confidence and capacity
b. Relational: negotiate and influence the nature of a relationship and
decisions made within it
c. Collective: people work together to get a better impact that each
could obtain alone (Rowlands, et al., 1997, p. 15).
4
For Kabeer, it is a “process by which those who have been denied the ability to
make choices acquire such an ability” (Kabeer, 1999, p. 435). For her, women
empowerment has also three dimensions:
A. Resources: material, social and human (pre-conditions for choice)
B. Agency: becoming aware of and act upon one’s goals
C. Achievements: outcomes of such choices (Kabeer et al., 1999, p. 437)
On the other hand, according to Gutierrez, women empowerment is
strengthening their innate vitality through knowledge, power and experience. “It is
a sense of internal strength and confidence to face life and to influence a social process
effecting their lives” (Gutierrez, 1990, p. 149). For her, the level of empowerment
can be measured with the following variables:
i.
Education
ii.
Land ownership
iii.
Control over family income
iv.
Savings
v.
Access to credit (Gutierrez et al., 1990, p. 151)
For the United Nations, women empowerment is “the process by which women
take control and ownership of their lives through expansion of their choices”. With this,
women will be able to define and overcome barriers in their lives shaping their
world and environment realizing their full identity and power developing
confidence in their own capacities such as:
 Decision-making power
 Access to information and resources
 Different options for making choices
 Positive thinking to make changes (United Nations, 2001).
In this way, women empowerment can be considered as a tool for creating
a social environment where women can take decisions and choices by themselves
or collectively to transform the society thinking and act freely with equality
(Hashemi, Schuler & Riley, 1996, p. 638).
5
According to the Government of India women empowerment means
“Moving from a position of enforced powerlessness to one of power", thus, it is a key
factor for development and for improving the status and position of women in the
society.
The United National Development Fund for Women (UNIFEM) considers
that women empowerment is important because it develops a sense of self-worth
for making changes and control one’s life creating a better social and economic
environments at national and international levels.
The above explanation shows that being a multi-dimensional concept,
women empowerment might not be easy to measure. For this, in 2012 the
International Food Policy Research Institute (IFPRI) proposed a tool to do it at the
household level. It is the Women Empowerment in Agriculture Index (WEAI)
developed by Alkire and other researchers which includes the following domains:
Figure No. 1: Women empowerment framework
Production: decisions about
agricultural production, assessing sole
or joint decision-making about food
and cash crop farming, livestock,
fisheries.
Indicators: Input in productive
decisions and autonomy in production
Resources: ownership of, access to
and decision-making power over
productive resources such as land,
livestock, agricultural equipment and
credit.
Indicators: Ownership of assets
Purchase, sale or transfer of assets
Access to and decisions on credit
Income: evaluates control over use of
income and expenditures, in terms of
sole or joint decision-making within
the household.
Indicator: Control over use of
income
Leadership: considers membership
in economic or social groups and
comfort speaking in public as
measures for leadership in the
community.
Indicators: Group member
Speaking in public
Time: allocation of time to productive
and domestic tasks and the
individuals` satisfaction with their
leisure time.
Indicators: Workload and leisure
Source: IFPRI, 2012, p.7
6
Figure No. 2: Model for women empowerment through agriculture
Women
E
D
U
C
A
T
I
O
N
Family support
Capacity building
Farming
Employment
Self-help groups
Land rights
Entrepreneurship
Access to ICT tools
Management training
Source: acdivoca, 2014
1.2.
Comments’ review
Women contribute to the economy being part of businesses, farms, domestic
work, being entrepreneurs, employees, and so on, and for this, the benefits of
empowering them are not just for them. Studies have revealed that when women are
involved and empowered the whole society improves. If their salary would be the same
as men's, the economies would grow; in the United States, for example, the country's
GDP would be 9% higher, in Europe, it would increase by 13%, in Japan by 16%, and
in 15 major developing economies the per capita income would increase 14% by 2020
and 20% by 2030 (UNCTAD, 2015).
If all forms of discrimination against women workers were eliminated,
productivity per worker could rise up to 40%. Companies with more women in
7
management roles have a profit 34% higher than those with the lowest representation.
If women that work in agriculture in 34 developing countries had equal access to seeds,
fertilizers and tools, the output would rise up to 4% (average) reducing the number of
undernourished people by 17% (about 150 million) (UNDP, 2000, p. 123).
Children also get benefits when women are empowered; evidence shows that
when women control more of the household income, the family's spending habits
change in favor of children. A study done in 200 countries found that women with an
additional year of education will reduce the child mortality by 9.5%. Moreover, when
the mother can read, 50% of the babies will be more likely to survive (Jahan & Mumtaz,
1996, p. 834).
Few projects of women empowerment have met their goals and others have
failed because bureaucracy, inefficiency, and corruption have wasted much of the
money allocated to rural development in poor countries. Furthermore, people who are
in charge of the projects do not believe in the potential that women have and for this,
they are still subservient in a system that reflects women’s consent in their
subordination (Lopez & Zahidi, 2015, p. 11).
II. SELF-HELP GROUPS
Over the last couple of decades, Self-Help Groups and their potential as a tool to
alleviate poverty and empower women have gained importance and interest worldwide
(Shylendra, 2006, p. 12)
o
Concept
Although SHGs exist without being linked to microfinance strategies, in this study
a brief understanding of it is required. Robinson defines it as a “small financial service in
the form of credit and savings given to people who farm, fish or herd”. It means, all types of
financial services such as micro loans, savings and insurance provided to low-income
households and enterprises (less favored sectors of society). In this context, SHGs can be
considered as a model or vehicle to deliver those products and services to the poor
(Robinson, 2001, p. 45). The common characteristics of the SHG based on a microfinance
model are:
8
 Attendance of regular weekly meetings by group members
 Training in loan utilization
 Discussions about social discrimination; gender awareness; health;
sanitation and education
 Contribution of fixed amounts (savings)
 Repayment of loan that members obtain (Woolcock, 2006, p. 34)
The National Bank for Agriculture and Rural Development of India stated that a
SHG is a rural poor homogeneous group formed voluntarily that save an amount from
their earnings and contribute to a common fund to lend to members for productive and
emergent needs (NABARD, 1995).
Krishnamurthi defined it as an “organization formed by people for pooling their
resources to help each other” (Krishnamurthi, 1996, p. 87), while Rao said that SHGs are
a “useful tool to help the poor meeting their urgent credit needs” (Rao, 2002, p. 24).
Usually, a SHG is formed of 10-20 women who come together voluntarily for a
common objective. These groups are part of the micro-level financing focus on providing
access to bank credit to the neglected, underprivileged and the deprived sections of the
society (Kashyap, 2001, p. 11).
They have emerged as a powerful tool to alleviate poverty, empower rural women
to increase their potential and identity, bring personal, social and economic changes,
facilitate their managerial abilities, and develop community value. In this way, these
groups gather people who share the same needs or problems that are not being addressed
by existing organizations, institutions or other types of groups (Stiglitz, 1993, p. 34). For
poor people it is hard to solve their problems individually but once they are together, it
becomes easier to tackle them.
2.1. Positive evidence
The literature review shows that there is a mixed evidence for the empowering
effect of the SHGs. It might not be sure that women improve their economic and social
situation when they are members of these groups but they have an important role in
9
reducing the vulnerability of poor providing emergency assistance and making women
confident by giving them control over assets, self-esteem and knowledge (Zaman, 2001,
p. 68).
Through SHGs women can use savings and credit for economic activities
increasing their incomes and assets and control them (Mayoux, 2000, p. 243). Rahman
established that “active women loaners had higher consumption standards and a role in
household decision-making, either on their own or jointly with their husbands, than passive
female loaners” (Rahman, 1986, p. 102).
During the South East Asian economic crisis in 1997, the Self-Help Groups
proved to be important for meeting the subsistence requirements of the poor families
(ESCAP, 2002, p. 101). Besides, IFAD reported gains in self-confidence and self-esteem
while women were able to articulate their needs and be respected in the household
reducing violence against them (IFAD, 2010).
Self-Help Groups have facilitated the formation of social capital teaching women
to work together for a common purpose (Putnam, 2000, p. 92). Little by little they have
access to information and networks for developing economic activities getting links to
wider movements for improving their position (Khandker, 1995, p. 198).
Besides facilitating access to financial services and offering a framework for
building technical and entrepreneurial skills, these groups help to reduce dependency on
expensive moneylenders by creating employment and increasing productivity. However,
there are key areas of these groups that need to improve such as internal controls,
accounting, organization, and others (Lalitha, 2002, p. 57).
2.2. Negative evidence
Although all the positive findings of SHGs, there are also some critiques.
Observations in India showed that banks prefer to borrow money to women for strategic
reasons (investment and recovery) than for benefiting them. According to this study,
women are more obedient and easier to discipline than men (Pitt, 1995, p. 79). On the
other hand, to Mayoux, the costs for women for participating in collective action are an
10
increased workload and conflicts within the family, situation that is often ignored by
policy-makers (Mayoux, 1995, p. 248).
Until now there are still doubts about the degree to which women keep control
over loans from SHGs. A research done by Goetz and Sen Gupta in 1996 shows that a
minority of women receiving credit control it. Many of them are considered “post-boxes”
passing the complete amount of the loan to their husbands, sons or sons-in-law, just
receiving money to pay it back. On average, only 37% of the loans are either fully or
significantly controlled by women (Goetz & Sen Gupta, 1996, p. 88-90). In Bangladesh,
for example, women are often unable to use loans by themselves because of the patriarchy
and the rural economy systems. Usually, men are the users (control and use the loan and
arrange for instalments) of more than 60% of women’s loans and around 78% of them
are used for other purposes than the initial one. The authors concluded that access to loans
had done little to empower women (Nagarajan, 2000, p. 269).
While the exclusion of the poorest is acknowledged in some researches, it is rarely
admitted by certain NGOs and government staff. Repayment rates put pressure on women
groups to exclude those that have economic problems (the poorest) (Mosley, 1996, p. 65).
As the micro credit available is based on collective collateral, the groups will often
exclude the very poor, who are perceived as poor credit risks with variable and low
incomes (Yunus, 2002, p. 45).
A study done in Bangladesh showed that there is 18% decrease and 70% increase
in violence and aggressive behavior in the households because of the women’s
involvement with financial institutions. Goetz also reported an increment in tensions and
domestic violence when women ask to their husbands for loan instalments (Goetz, 1996,
p. 176). Nonetheless, Schuler stated that group-based credit programs can reduce men's
violence by making women's lives more public (Schuler, 1996, p. 63).
On the other hand, “even in financially successful microfinance programs, actual
contribution to empowerment is often limited because most women remain confined to a narrow
range of female low-income activities”. Further, they have greater workloads and limited
control over income as men keep their earnings for their own (Khandker, 1998, p. 90).
11
The perception is that savings and credits provided by SHGs can lead to economic
self-reliance, but there are debates emerging which focus on the long-term empowerment
and what really constitutes a successful one (Narayan, 2002, p. 34). Jo Rowlands
mentions that the use of empowerment term has emphasis on economic and political areas
assuming that when women are together they find strength and look for knowledge and
social actualization (Rowlands, 1998, p. 187), but this can’t be taken as a general rule.
12
CHAPTER II
SELF-HELP GROUPS IN INDIA
Since the 80’s, the SHGs have become a significant movement in India in order to eradicate
poverty and empower rural women. Generally these groups are based in poor villages acting as a
tool for bringing economic development and contributing to community empowerment (Moeller,
1998, p. 121). This movement has been pointed by many researchers as the model that should be
used for poverty reduction (IFAD, 2012). For knowing more about this, it is useful to have a look
of the background of India as a country and understand why the SHGs have been considered
beneficial for reducing poverty and empower women within the nation.
I.
INDIA-THE SUBCONTINENT
The Republic of India is located in South Asia sharing borders with Pakistan and
Afghanistan on the west and Bangladesh, Myanmar, China, Tibet, Nepal and Bhutan on the
east. It has twenty nine states and seven union territories 1. It is the seventh largest country by
area with 3’287.263 sq. km and the second most populous with 1’267.401.849 people
(17,5% of the total world population) of which 32% is urban and 68% is rural. The population
density is 386 people per Km2 with a population growth of 21,3% (GOI, 2015).
There are more than 2000 languages in the entire country of which the Constitution
recognizes 22 being Hindi and English the official ones. 80,5% of the population is Hindi,
followed by Muslims with 13,4%, among others (Sathyaprakash, 2008, p. 23).
1.1. Society
India is a hierarchical society where people are ranked according to families,
clans, castes, and religions. The caste system, considered as an ancient fact of Hindu life,
is a social stratification that separates communities into five groups: a) priests, academics;
b) warriors, kings; c) merchants, landowners; d) commoners, peasants, servants (unskilled
workers); and e) street sweepers, latrine cleaners. Some scholars argue that this system
was created by the British colonial regime (Gupta, 2000, p. 2).
1
(Federal territories) type of administrative division ruled directly by the Central Government.
13
Over 60% of Indians, with their consent, have their marriages arranged by their
parents or other family members. Marriage is thought to be for life and the divorce rate is
1,2%-13 per 1000. Child marriages are common, especially in rural areas where 33%
of women get married before reaching the legal age (18 years). Almost half of all child
brides worldwide live in South Asia, and 1 out of 3 are in India (UNICEF, 2014, p. 2).
The median age of marriage for women in the 20–49 years age group ranges between
16.5 to 18.3 years (Indian Commission plan, 2012, p. 166). Usually, after marriage the
bride leaves her house to live with her husband accepting the authority of the senior
relatives, performing household duties, and taking care of children (ICRW, 2014, p. 1).
Even though Indian law prohibits dowry payments since 1961, it is still common and
more in rural areas where parents pay to marry their girls with cash, jewelry or household
goods (Anderson, 2007, p. 98).
1.2. Education
In 2011, the literacy rate was 74% (male: 82,14% and female: 65,46%). It has
been estimated that this country will attain universal literacy in 2060 (Indiastat, 2011).
The constitution of India, written over 60 years ago, guarantees that all children up to 14
years have the right of a free and compulsory education, a statement that has not yet
become true (National Portal of India, 2015). The mean years of schooling of the working
population (over 15 years old) increased from 4.19 years in 2000 to 5.12 years in 2010,
which is below other emerging economies such as China (8.17 years) and Brazil (7.54
years) and the average for all developing countries (7.09 years). Youth literacy has
increased from 60% in 1983 to 91% in 2010 and adult literacy improved from 64,8% in
2001 to 74% in 2011 (Commission planning of India, 2013, p. 47).
The difference between the highest and the lowest literacy rate in the country is
high. Kerala state, in the south west, has the highest rate with 90,9%, while Bihar state,
in the north east, has the lowest with 47,5%. In 2014, 3% of the Indian public funds were
invested in education to improve the shortages of teachers, books, and basic facilities, but
the rapid growth of the population complicates the situation and the budget is never
enough (GOI, 2014).
14
Figure No. 3: Difference literate levels within the country
Bihar
47,3%
Kerala
90,9%
Source: mapasdelmundo, 2015
Education for the male gender is considered a priority within the society. Boys are
favored because their value in agricultural activities is higher, and after marriage they will
live with their parents and support them as they get old, while still the female population
is kept away from schools because parents consider a wastage of money and time to
educate them due to they will leave home after marriage. Moreover, in most of the rural
areas schools are far from the village and parents do not send girls for avoiding any kind
of harassment problem (Altbach, 2005, p. 211).
A study done in 2007 noted that girls are quickly overtaking boys in schools but
mostly they attend to classes only for examinations. For some researchers, girls are
educated to make them a better marriage material (Oxford University, 2007). While
enrolment levels at the elementary school are generally high, Uttar Pradesh, Bihar,
Madhya Pradesh and Jharkhand have the lowest attendance rates (below 60%) (Mrandal
& Verghese, 2012, p. 48).
1.3. Poverty
India is home of 22% of the world’s poor. Around 26% of the population lives
below the poverty line (more than 300 million) with less than 1,25 USD per day. Their
average daily income is less than Rs. 28,65 (46 USD cents 2) in cities and Rs. 22,42 (36
USD cents) in villages (World Bank, 2013).
2
The exchange rate used in this work is 1USD = 62 Indian Rupees
15
The main determinants of poverty in India are:
1. Lack of income and purchasing power
2. Increase in the price of food, especially food grains (70-80% of the
consumption basket)
3. Inadequacy of social infrastructure
4. High population growth rate
5. Unequal distribution of income and resources (Deaton, 2010)
In 2005, the lowest castes and tribes accounted for 80% of poor rural people. The
poorest areas in India are in Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand,
Orissa, Chhattisgarh and West Bengal which are semi-arid tropical regions with shortages
of water and recurrent droughts (Suryanarayana, 2011, p. 34).
Figure No. 4: Poorest states in India
Source: geocurrents, 2015
According to the Global Hunger Index Report in 2012 by the International Food
Research Institute, India ranks 65 in Global Hunger Index. Though this country does not
have shortage of food production, it has the highest percentage of underweight children
under five years (30,7%). In Madhya Pradesh, Andhra Pradesh, Bihar, Haryana,
Jharkhand, Chhattisgarh, Karnataka, and Uttar Pradesh, 50% of India's population, 70%
of children between six months and 5 years are anemic (Topalova, 2010, 87).
It is expected that Indian population will reach to 1.5 billion by 2026 and then, it
will be the largest nation in the world where around 20 million new jobs would be
required (Verma, 2011, p. 8).
16
1.4. Gender
Patriarchal norms have relegated women to secondary status within the household
and workplace affecting their health, financial status, education, and political
involvement. Indian legislation allows women to inherit real estate, but under the
traditional Hindu law, males control family resources, such as land, and under the Muslim
law, men tend to inherit twice the share of women (Gupta, 2009, p. 34).
According to the 2011 census, there are 586.47 million women representing
48,5% of the total Indian population of which 56,2% is malnourished because usually
they are the last member of the household to eat and the last to receive medical attention
(National Family Health survey, 2007, p. 3). This problem gets worst when men migrate
because they can’t provide income for the family and women remain in charge of the
entire household and field (Bennett, 1993, p. 86). Bihar (45%), Chhattisgarh (43%),
Madhya Pradesh (42%) and Odisha (41%) are the states with the highest proportion of
undernourished women (Indian commission report, 2012, p. 199).
On the other hand, less than 45% of women have access to funds. They face
barriers to access to credits because they do not have any collateral and only 15% of them
have a bank or savings account (Cloke, 2010, p. 23). Women work long hours in and
outside the household but their work is invisible and it is not considered as paid-wage
labor. Moreover, they do not have the same freedom of mobility as men. Nowadays, two
thirds of Indian women face restrictions in visiting public places (market, health care
center or other communities) by their own, what limits their participation in public and
political life (Kishor & Gupta, 2009).
The government has declared that “women are equal partners like men” bringing
some changes in women’s status and role in the society. Nonetheless, news of violence
against them show that there is a deep-rooted gender bias. Women are living in
unsatisfactory socio-economic conditions being poor and illiterate and having to sustain
their family physically and emotionally. These are some of the reasons why still girls’
infanticide is common in the states of Uttar Pradesh and Punjab (Porter & Gavin, 2010,
p. 64). In the entire country the under-five mortality rate for girls is 64 per 1000 live births
and 55 per 1000 live births for boys (Indian census, 2011).
17
From 1993–94 to 2009–10 women’s participation in the labor force decreased
from 36,8% to 26,1% in rural areas and from 17% to 13,8% in urban areas. India’s Gender
Inequality Index value of 0.617 in 2011 places the country at 129 among 149 countries
globally what shows the high gender inequality with no equal opportunities for women
and men (Indian Commission plan, 2012, 166).
1.5. Economy
India is one of the world's fastest-growing economies. Until 1991, it
followed protectionist policies but a balance of payments crisis forced the nation
to liberalize its economy, and since then, it has been directed towards a free-market with
special attention to foreign trade and direct investment (Kishor, 2009, p. 15).
According to the International Monetary Fund (IMF), 2014, the Indian economy
is the 10th-largest economy by market exchange rates, and the third-largest by purchasing
power parity. Its average annual GDP growth rate has been 5,8% over the past two
decades, reaching to 6,1% during 2011–2012. The service sector contributes with 55,6%
to the GDP, the industrial sector with 26,3% and the agricultural sector with 18,1%. In
2014, the GDP per capita was 1627 USD, higher than in 2013 (1508 USD) and it is
estimated to increase to 2110 USD by 2016 with an average growth of 8%, which will
make India the world's fastest-growing economy until 2050 (World Bank, 2014).
However, since the economic liberalization, economic inequality between the
country’s states has also grown. The per capita net state domestic product of the richest
states in 2007 was 3.2 times that of the poorest. In 2012, for example, Goa state (south
west) was the richest getting around Rs. 192.652 (3107,29 USD) per capita while Bihar
was the poorest with Rs. 23.435 (378 USD) (UN data, 2013).
In 2011, India was the world's tenth-largest importer and the nineteenth-largest
exporter. Its main industries are: textiles, telecommunications, pharmaceuticals,
biotechnology, food processing, steel, and software. Its major exportations include
petroleum products, textile goods, jewelry, software, engineering goods, and chemicals,
and its main importations include crude oil, machinery, gems, fertilizers, and chemicals
(Trade maps, 2015).
18
No.
1
2
3
Table No. 1: Indian trade partners
Exported
Importers
Exporters
value USD
2014
United States
42’684.740
China
of America
United Arab
32’919.602 Saudi Arabia
Emirates
United Arab
China
13’434.251
Emirates
Imported
value USD
58’230.543
32’703.510
27’287.867
Source: Trade maps
In 2014 the main exportation partners of India were the United States of America,
the United Arab Emirates and China buying mainly petroleum oils, diamonds,
medicament mixtures, and cotton. On the other hand, India’s main importation partners
were China, Saudi Arabia and United Arab Emirates selling mainly crude petroleum,
precious & semi-precious stones, and electrical equipment (Trade maps et al., 2015).
1.6. Agriculture
Around three-fourths of Indians people live in some 500.000 villages where
agriculture is the main source of income. These places have fewer than 1000 inhabitants,
but some have as many as 5000 people (Mayer & Ziaian, 2010, p. 45). Agriculture is vital
in its economy because it determines the life standard of more than 50% of its population
and over 70% of the rural households depend on it as their principal mean of livelihood
(Rangan, 2012, p. 45).
The average farm size is 1.5 hectares. In 1947, the land reforms redistributed land
to poor farmers and now the government is working to encourage farm expansions, but
real estate continues to be divided into even smaller units due to customary and succession
laws what limits the use of mechanized farming techniques (Indiastat et al., 2011). Out of
the 138 million farm holdings in the country, 117 million are small and marginal (84,8%)
(NABARD, 2012, p. 4).
India has as much usable farmland as the European Union: 180 million hectares,
of which 140 million are planted (60% of the total land area) (Agarwal, 2013, p. 23). The
Indus and Brahmaputra regions in the north traversed by the Ganges River and graced by
the monsoons 3 are the country’s most fertile regions where most of the agricultural
3
Wind that carries heavy rains
19
production takes place, mainly sugar cane and wheat. Precipitation falls from June to
September and its intensity determines the production levels for the year (Farmer’s portal
India, 2015). The main agricultural products are:

Rice: the most important food crop covering about one third of total cultivated
area and providing food for more than half of the population

Wheat: staple food particularly in the north and north-western regions

Millets: consumed by poor people as staple food (jawar, bajra and ragi)

Sugarcane: India is the 2nd largest producer in the world after Brazil

Others: cotton and oilseeds (Ministry of Agriculture, 2014)
India has emerged as the first in the world in the production of milk, pulses, jute
and jute-like fibres; second in rice, wheat, sugarcane, groundnut, vegetables, fruits and
cotton production and is a leading producer of spices and plantation crops as well as
livestock, fisheries and poultry (NABARD, 2013, p. 17). Nonetheless, it faces some
problems such as supply channel bottlenecks, lack of marketing and proper storage
channels that leads to inconvenient because when the productivity is good, there are poor
agricultural exports (low quality) and a high wastage of food grains (Sharma & Rao,
2010).
1.6.1. Women in agriculture
Food and Agriculture Organization (FAO) estimates that women produce
between 60-80% of the food in most developing countries and are responsible for
half of the world’s food production. In India, 79% of rural female workers are
engaged in agriculture. Although this sector can be an important engine of growth
and poverty reduction, it is underperforming mainly because women, who are often
an important resource, face constraints that reduce their productivity (FAO, 2013,
p. 12).
Women manage the farm work but they are not considered farmers; they
work in the field mainly in planting, sowing, and weeding but they are not
landowners; they harvest and process but they do not control the market and
income; and they typically work 16 hours per day in paid and unpaid labor with no
leisure time (Prasad, 2005, p. 123). Despite this vital contribution, they do not own
20
productive assets (land, livestock, fisheries, technologies, credit, finance, markets)
and experience gender differentials in wages (Choudhary & Parthasarathy, 2007, p.
60). According to FAO, women in India own less than 10% of agricultural land and
even when they are the owners, they do not control it (UN India, 2014, p. 11). Also,
the female hourly wage rates in agriculture vary from 30%-50% of the male rates.
The chart below shows the difference in the earning pattern where men’s wages are
higher in all employment categories:
Table No. 2: Daily salary in agricultural activities
Salary (Indian Rs./day)
No.
Activity
Women
USD
Men
1 Ploughing
27,91
0,45
39,09
2 Sowing
32,73
0,53
41,81
3 Transplanting
28,37
0,46
38,78
4 Weeding
29,22
0,47
39,15
5 Harvesting
25,74
0,42
34,68
6 Animal husbandry
55,73
0,90
57,74
7 Fisheries
27,96
0,45
42,64
USD
0,63
0,67
0,63
0,63
0,56
0,93
0,69
Source: (Desai, Dubey, Joshi, Sen & Shariff, 2010, p. 16).
A general model in India and in the entire world is that the poorer the area,
the higher the contribution of women mainly as subsistence farmers working small
pieces of land (less than 0.2ha) (Kelkar & Nathan, 1991, p. 35).
1.6.2. Women’s development: the world’s challenge
United Nations committed to work for the empowerment of women in the
International Conference on Population and Development in Cairo in 1994 and
later on in the Social Summit in Copenhagen in 1995. In the same year, this
commitment came into an action plan at the Fourth World Conference on Women
in Beijing where the governments recognized the right of freedom of thought,
conscience, religion and belief of women to develop their full potential in society
and shape their lives according to their aspirations (Datta & Gailey, 2012, p. 63).
In 2000, 189 countries of the United Nations stated 8 millennium goals with
the purpose of achieving development in the world. Among these, the third one is
related with the empowerment of women looking for reducing indicators of
disparity by 2015, promoting gender equality and empowering women through
wage employment and political participation (Shelton & John, 2006, p. 230).
21
Universalizing women empowerment has been important because it
contributes to reduce the population growth and child mortality; improves
nutrition, hygiene and health of households, children’s performance in schools;
allocation of household resources; and contributes to the economic growth in
general (Seth, 2001, p. 128). However, gender bias, discrimination, confinement
of women to the private place, restrictions on their mobility, poor access to health
services, nutrition, education and employment, disparities in available
opportunities, and exclusion from the public and political spheres are still some of
the main barriers for women empowerment/development across the world (United
Nations, 2012).
II. THE SELF-HELP GROUPS: THE TOOL OF INDIA TO ERADICATE
POVERTY AND EMPOWER WOMEN
In India, the SHGs are village-based organizations that focus on building the savings
and credit, as well as the social empowerment of their members. A typical group has 10-20
poor women sharing similar socio-economic backgrounds who meet once a week to pool
savings and discuss issues of mutual importance. The fund is deposited in the group’s bank
account which is available for providing credit to the members in need. One of their objectives
is to improve community issues such as the abuse of women, alcoholism, the dowry system,
educational quality, and inadequate infrastructure (Chen, 2007, p. 18).
Since independence in 1947, there have been some changes in policy approaches from
the concept of ‘welfare’ till the 70’s to ‘development’ in the 80’s and now to ‘empowerment’
where the SHGs play an important role for improving poor’s people life (Dennis & Gallupe,
2002, p. 4). From the First Five Year plan (1951-56) the alleviation of poverty has been one
of the objectives of the government of India who has launched some employment and income
generation schemes for women in rural areas to provide a source of income, sustain
livelihoods, and eradicate poverty (National portal of India, 2015). Within these schemes, the
SHGs have been related with microfinance to improve the living standards of the poor people,
strengthen their productive potential, and provide opportunities for being part of the economic
process (United Nations, 2001, p. 34-36).
22
2.1. Five year plans
The five year plans of India started in 1947 with the main objective of achieving
social and economic development after the Independence. The SHGs were included in
the ninth plan (1997-2002) to empower women as active agents for social change and
development. The strategy was to shift from an individual beneficiary to a group
approach, creating an environment where women can exercise their rights as equal
partners with men, increase their decision making and empower them with the necessary
skills to become economically independent and self-reliant (Planning Commission of
India, 2010).
Nevertheless, after more than 65 years of planning, 26,1% of the Indian population
still lives below the poverty line. The schemes have started and closed without any
remarkable change for women, especially the rural ones (Larence, 2013, p. 29). One of
the main critiques to these plans is that training, when done, is provided as an isolated
input without involving women for recognizing their opportunities to diversify their
incomes (Karmakar, 2009). Now, the twelfth plan is currently underway (2012-2017) and
the government intends to reduce poverty by 10%. For overcoming the previous critiques,
its main goal is to develop women’s skills from traditional to emerging ones (technicians,
electricians, plumbers, drivers, etc.) (GOI, 2013).
2.2. Origin of the groups
In 1982, the government of India launched the Development of Women and
Children in the Rural Areas (DWCRA) program that started in 50 districts (all over the
country) on a pilot basis. The main objective was to improve the socio-economic status
of the poor women in the rural areas through creation of groups for income-generating
activities encouraging the saving habit and collective action (Parpart, 2002, p. 56). In the
mid-80’s, the SHGs were piloted by NGOs, notably MYRADA, to provide financial
services to the poor (IFAD, 2006, p, 7).
23
Figure No. 5: Beginning of the SHG’s-BLP in India
Source: mapsofindia, 2015
In 1991, NABARD promoted this movement on a large scale launching a pilot
project for linking the existing groups (500) with the banks allowing them to lend to the
SHGs without any collateral, and since then, this is known as the Indian microfinance
model (Montgomery & Hulme, 1996, p. 207). The linkage program started in Gujarat,
Maharashtra, Andhra Pradesh, Rajasthan, Tamil Nadu and Kerala states and nowadays,
it has expanded into one of the world’s largest micro-finance networks (Chakrabarti &
Ravi, 2011, p. 156).
The main promotors of the SHGs are the government of India, the National Bank
of Agriculture and Rural Development and the NGOs that have an advantage in reaching
the poor due to their proximity, the trust they generate working in the area, flexibility in
approach, and cost effectiveness reasons. In 2014, nearly 600 banks like the Bank of
Maharashtra, State Bank of India, Cooperative Banks, Regional rural banks, the
Government institutions and more than 3024 NGOs were involved in the promotion of
SHGs (Center for social research in India, 2014). However, their action is weak in some
of the poorest states of the country where there is a lack of spirit of cooperation and
collaboration (GOI, 2010).
2.3. SHGs’ models
There are three main models that the SHGs can follow according to their needs,
desire and availability, and they are:
24
i.
Bank-SHG members: the bank acts as a SHG promoting institution. It deals
directly with the groups, opens accounts, and provides financial assistance and
loans with a credit rate that is decided with the members.
ii.
Bank-facilitating agency-SHG members: NGOs, government agencies, or
other community-based organizations form the groups acting as facilitators. They
nurture them and provide training about thrift and credit management. Banks give
loans directly to the groups (they decide the credit rates) and open saving
accounts. This is the most successful and popular model in India.
iii.
Bank-NGO-MFI-SHG members: NGOs act as facilitators and microfinance
intermediaries. First they promote the creation of the groups, nurture and train
them, and then they approach to the banks for loan assistance for lending to the
SHGs (Asokan, 2005).
2.4. Stages of the SHGs’ creation
In order to clarify the steps to be followed in the creation of SHGs, NABARD has
developed a manual with the following phases:
a. First: social mobilization and formation of groups. Link people with mutual
affinities (similar experience of poverty, living conditions, livelihood, caste,
place of origin, etc.). This process normally takes 5-6 months. Once it is formed,
it takes around 1-one and a half years to settle.
b. Second: savings and internal lending among the members of the group (funds
from the government and linkages with banks can increase the amount).
c. Third: obtain micro finance
d. Fourth: setting up of micro enterprises. This should be the objective of every
group. However, only those with special skills, know-how, marketing linkages,
and access to the essential infrastructure can reach to it (NABARD, 2014).
2.5. Characteristics of the SHGs
The main characteristics of these groups are:
o 10 to 20 members (active participation)
o From one family, only one member
25
o Only men or only women (not mixed groups-women’s groups generally
perform better)
o Members with the same social and financial background
o Regular meetings (compulsory attendance) (Swain & Wallentin, 2009)
 Instruments of the group
For the correct development and organization of the groups, the
following requirements are a must:
o Book keeping: for all transactions
o Minutes’ book: keep the proceedings of the meetings, the rules of the group,
names of the members, etc.
o Savings and loan register: savings of each member and of the group as a
whole, details of loans, repayments, interest collected, balance, etc. (Nair,
2005).
2.6. Importance of the SHGs
The Self-Help Groups are important in India because of the following reasons:
o To alleviate poverty
o To increase employment opportunity
o To accelerate economic growth
o To raise status in society
o To promote income generating activities
o To interact with other social groups
o To improve collective bargaining position
o To group very poor people (Morduch, 1998, p. 86)
For these and other reasons, the SHGs are considered as the vehicle of change for
the poor and marginalized women where they can participate as subjects and not as
objects of the development process (Rappaport, 1994, p. 2). The main benefits they offer
are:
26
Figure No. 6: Main benefits of the SHGs
Increase
Ability to save , access to credit,
employment, decision-making, children
education, health care, participation in
local government, self-confidence,
leadership, banking knowledge,
interaction with outsiders, community
participation, nature care
SHGs
Decrease
Domestic
violence
Source: Harper, 2002
2.7. Functions of the SHGs
For achieving positive results in social and economic empowerment, the members
have to be responsible for their own future by organizing themselves into the following
areas to be able to provide financial/social support for themselves when need it:
2.7.1. Savings
The amount can be small but it has to be a regular and continuous habit
among all the members. Motto: “Savings first, credit later”.
 Open a bank account
After the first or the second meeting where the savings are collected, the
group savings bank account can be opened in the name of the SHG. For this,
some of the following documents are required:
o Resolution: acquired in the group meeting, signed by all members,
indicating their decision to open an account with the bank.
o Authorization from the SHG: at least three members, any two of whom
jointly operate the account.
o Copy of the rules and regulations of the SHG: not a must (NABARD et al.,
2014, p. 12).
27
Table No. 3: Savings of women’s SHGs
No. of
Saving amount
Agency
SHG
(lakh)
Commercial banks
3’483212
565641,83
1’753387
139081,96
Cooperatives
1’015079
96565,15
Total
6’251678
801288,94
Source: NABARD, 2014
2.7.2. Internal lending
The savings can be used as loans for members. The purpose, amount, rate
of interest, etc. is decided by the group. Members can also obtain loans from banks.
 Conditions
After saving for a minimum period of 2 to 3 months, the common savings
can be used for lending. The loan is issued in the name of the group and the
amount can be 1 to 4 times the SHG’s savings. The bank can’t decide the
purposes for which the SHG gives loans to its members but they mainly are for
emergency needs like illness in the family, marriage, etc. or for buying assets for
income generation. The group will decide about the purpose for which loans are
given to the members and it is collectively responsible for the repayment
(Punithavathy & Eswaran 2002, p. 56). No collateral security should be taken by
banks.
The Reserve Bank of India gives freedom to the banks to decide about
the interest rates to be charged to the SHGs and the rate of interest charged by
the group to its members should be left to the group (usually 2 or 3 rupees per
hundred rupees). Some of the documents required by banks for lending to SHGs
are:
o Inter-se agreement to be executed by all the members of the group.
Agreement by the members with the bank authorizing a minimum of three
members to operate the group’s account with the bank.
o Application for loan assistance (details of the purposes for which the SHG
gives loans to its members)
28
o Agreement between the bank and the SHG wherein both parties agree to
abide by the terms and condition set thereon (existing formats) (NABARD
et al., 2014, p. 15).
2.7.3. Discussing problems
In every meeting, the group will discuss and try to find solutions to the
problems face by its members (Harper, et al., 2002).
2.8. Rules of the SHGs
Once the group is formed, the members need to agree in simple rules for the
correct function of it, for example:
o When to meet
o Time and place of meetings
o Penalties for non-attendance
o Amount of saving
o Loans to each other
o Repayment installments
o Training:
 Basic mathematics
 Writing of books
 Women empowerment
Note: The most effective method of training is to visit a successful SHG and
interact with its members understanding their characteristics and functions (Pretty &
Ward, 2001, p. 90).
2.9. Spread of the SHGs
The movement of the SHGs has had its major achievements mainly in the southern
states of the country, where not necessarily the poorest families are, thanks to the proactive role of state governments, presence of well performing NGOs, socio-cultural
factors and higher number of bank branches. The acceptability of it is higher and
predominant in Andhra Pradesh, Uttar Pradesh, Tamil Nadu, and Karnataka which
29
account for two-thirds of the SHGs linkages (with Andhra Pradesh alone accounting for
40%). Only one of these states, Uttar Pradesh, has a higher poverty ratio (31,15%) than
the national average (26,1%). Kerala, Maharashtra, Orissa, West Bengal, Gujarat,
Madhya Pradesh, Rajasthan, and Bihar have 23,6% of the SHGs linkages while the
remaining states and union territories have only 1,5% (Leach & Sitaram, 2012).
Large sections of rural population from Assam, Bihar, Chhattisgarh, Jharkhand,
Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal are not covered yet
by the program showing regional imbalances within the blocks/districts mainly because
there is a shortage of competent NGOs that have not been able to replicate the strategies
followed in the south (Indian journal of applied research, 2012, p. 143).
Figure No. 7: SHG coverage
The Northeast and Jammu and Kashmir need special attention because of the
complexities prevalent in the regional, political, economical, and human conditions of the
areas. The main reason for the poor coverage of the program in some states is the lack of
efforts by bankers to identify NGOs with savings and credit groups; a lack of NGOs
already working with SHGs, and the unsuitability of the approach to the region (Leach &
Mearns, 1991, p. 76).
During 2010-2011 the number of families that took bank loans through the SHG
program was around 6 lakhs in the north eastern region, 35 lakhs in the eastern region, 7
and 13 lakhs in the central and western regions, respectively, and the southern region was
30
at the top with 102 lakhs families benefitted from this program (NABARD et al., 2014,
p. 34).
 Growth of the SHGs
Table No. 4: SHGs in India
Detail
Information
2014
% of women groups
90
*Women SHGs linked with banks
79
Number of states
29
Average loan disbursed by banks
1,76 lakh
Average loan/SHG Rs.
42.621 (690 USD)
Average loan/family Rs.
3044 (50 USD)
Average savings per group
13322 (215 USD)
*Southern region
16878 (272 USD)
*Northeastern region
4073 (66 USD)
SHGs formed and financed by banks
28%
SHGs formed by other agencies (NGOs) 72%
No. of women (members) trained
3175101
In 2012, only southern regions (mainly Assam, Karnataka, Rajasthan and
Tamil Nadu) reported a growth in the number of SHGs while the other regions showed
a decline (NABARD et al., 2014, p. 19).
Table No. 5: Progress of the SHG program
2013
2014
Detail
Number
Amount
Number
Amount
(lakh)
(crore)
(lakh)
(crore)
Loans disbursed
10.37
17’854,31
11.52
21’037,97
Savings accounts with banks
59.38
6514,86
62.52
8012,89
Starting from a modest pilot project in 1992, the SHG-bank linkage program is
a solid structure with more than 79.60 lakh savings-linked Self-Help Groups covering
over 96.6 million of poor households with total savings of Rs. 60984 lakh. In 2014,
6304 women SHGs joined this program covering around 141858 more members
(NABARD et al., 2014, p. 11).
31
Table No. 6: Region-wise savings balance per SHG
2013
2014
Region
Growth
(Lakh) (Lakh)
Northern
7810
7748
-62
North-Eastern
4017
4073
56
Eastern
9471
10393
922
Central
8889
11525
2636
Western
7680
10367
2687
Southern
14352 16878
2526
*Average
11230 13322
2092
Total
52219 60984
8765
Even though the growth of the SHGs has been massive, some studies argue that
the positive points are heavier for the banks than for the rural women because it has
been the opportunity for these institutions to provide credit to the poor and reach a
larger number of small borrowers with lower transaction costs and high repayment
rate; what gives the impression that the SHGs have transformed the poverty alleviation
initiatives into business opportunities (Meenambigai, 2004, p. 145). Some institutions
in their over enthusiasm to accelerate the pace and earn “handsome returns” have done
unethical practices at the cost of quality of services creating mistrust in the movement
and proving that the form the microfinance is managed until now, is still not
sustainable (Reddy & Manak, 2005).
2.10. Lenders of the SHGs
Table No. 7: Loans disbursed to SHGs
Loans
Agency
No. of SHG
Rs. (lakh)
Commercial banks
663636
1387927,49
291587
593968,87
Cooperatives
196501
121900,64
Total
1151724
2103797,00
A. Commercial Banks: provide 66% of the total loans to women SHGs. They
have the highest credit links in 12 states of the country, nine of them with lower
poverty ratios than the national average. Andhra Pradesh, Tamil Nadu, and
Maharashtra have the maximum credit linkages, while in Goa, Sikkim, and
Manipur, they are the only financers (Madara & White, 2010, p. 85).
The number of SHGs linked with banks has been increasing for the last
3-4 years. In 2014, 13.66 lakh groups took a loan. A region-wise analysis shows
32
that the western region asked for more loans than the north eastern region; Bihar
and Chattisgarh reported an increase in the number of SHGs and quantity of
loans, while Jharkhand had a decline on them (NABARD et al., 2014, p. 20).
Figure No. 8: Bank loans disbursement to SHGs
235718
175768
117269
79125
93092
98404
50783
As can be seen in the graph, the banking density is significantly higher
in the southern, northern and western regions as compared with the northeastern, central and eastern regions.
B. Regional Rural Banks (RRB): in March 2013 there were 64 RRBs with a
network of 17856 branches covering 635 districts. 28% of the total loans are
provided by these institutions to women SHGs. At the beginning, one-third of
these banks were operating in south India and that is why they have their
maximum linkages there. They are the main financers of SHGs in eight states
with a high poverty ratio, mostly in Karnataka and Uttar Pradesh. The highest
average loan per household is about Rs. 2409 (39 USD) in Haryana and the
lowest is Rs. 293 (5 USD) in Uttar Pradesh. In states like Orissa, Assam, and
Madhya Pradesh the average loan is below Rs. 1000 (16 USD) (NABARD et
al., 2014).
C. Cooperatives: provide 6% of the total loans to women SHGs which are mainly
located in Punjab, West Bengal, and Andaman and Nicobar Islands. West
Bengal is the state that has the maximum linkages (1311) with an average loan
of Rs. 396 (6 USD) per member, while in Punjab it is Rs. 2625 (42 USD)
(Journal of Microfinance, 2014).
33
Table No. 8: Region-wise analysis during 2013-14
Number of SHGs
Region
Total
Commercial RRBs Cooperatives
Banks
Northern
11.444
4.843
7.631
23.918
North Eastern
5.323
10.524
354
16.201
Eastern
87.865
73.247
136.366
297.478
Central
28.074
36.007
2.312
66.393
Western
43.683
12.330
31.833
87.846
Southern
590.864
196.469
87.252
874.585
Total
767.253
333.420
265.748
1’366.421
D. NGOs: with the example of Grameen Bank in Bangladesh, poor rural people,
especially women (better repayment capacities), gained acceptability among the
NGOs’ community (Pattenden, 2010, p. 34). Most of the NGOs’ linkages are
concentrated in south India where they work as facilitators or as financial
intermediaries, but they do not keep the savings of the groups. In Jammu and
Kashmir, Sikkim, and Gujarat the average loan is lower than Rs. 1000 (16
USD), while in Goa and Maharashtra it is Rs. 2447 (40 USD) and Rs. 2185 (35
USD), respectively (Mohindra, 2013).
To facilitate the entry of new NGOs partners in this program, NABARD
developed the concept of “Resource NGOs” where experienced institutions
with skills and capacity in microfinance act as resource centers providing
training for guiding other NGOs to take up the SHGs’ promotion (GOI et al.,
2014). One of these NGOs is PRADAN. It was established in 1983 and it is
India’s leading NGO in microfinance working in Bihar, Karnataka, Madhya
Pradesh, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh, and West Bengal,
supporting agricultural activities and the formation of women’s groups for
savings, credit, and income generation. In 2014, NABARD gave Rs. 196.43
crore (1,9 USD million) as grant assistance to some of these organizations for
the promotion of SHGs in the country (NABARD et al., 2014, p. 164).
2.11. Rules of lending
Before giving any loan, every financial institution will see the performance of the
group according to some factors and they have the right to give it immediately, wait for
3-6 months to review the development of the group, or deny it. The procedure and rules
34
for getting a loan can slightly vary among the different borrowers; for the following
example, ICICI Bank has been considered:
o
SHG should exist for at least 6 months
o
Group: 10-20 women
o
Minimum savings: Rs 5000 (81 USD)
o
Processing fee: 1% (plus applicable service taxes-above Rs. 25000
(403 UDS)
o
Penal rate: 6%
o
Maximum repayment period: 36 months (ICICI Bank, 2015)
2.12. Advantages and disadvantages of the SHGs
Table No. 09: Advantages and disadvantages of SHG’s
Advantages
Disadvantages
*Equity
*Members not economically equal
*All members save the same amount *Not equal credit absorption
*Inclusion of different socio- *Not equal repayment capacity
economic groups
*Creation of an institutional *Lack of education among the
framework
members
*Participation of women
*Entry barriers (meetings, savings
*Training in income activities
and repayments)
*Migrate for seasonal wage
employment
*Self-exclusion
*Patriarchal system
*Interior and tribal villages not
benefited
*Disciplined loan repayment
*Culture of thrift
*Low interests rates
*Consumption and production *Loans not used for household
needs met
needs
* Drop-outs (get savings + earned *Absence of clear norms
interests)
*Absence of monitoring
*Absence of registers (savings)
*Corruption
Source: Karl Marilee, 2005
The literature review shows the pros and cons of the SHGs as a mixed panorama.
On one hand, some researchers argue that they are an effective tool to pull the poor
households out of poverty. Vadivoo and Sekar, for example, said that SHGs movement
help women to fight against direct and indirect barriers to their self-development in the
social, political and economic participation pointing these groups as one of the most
35
significant tools to adopt participatory approach for the empowerment of women,
benefiting not only them but also their families and community (Vadivoo & Sekar, 2004).
Tripathy also said that the SHGs are instruments for social mobilization, economic
empowerment, capacity and entrepreneurship building, and community solidarity
(Tripathy, 2004).
On the other hand, there are also some disadvantages. Biruda, for example,
believes that some SHGs do not provide women with enough training to effectively
pursue economic development for their households. He states that this movement has not
taken into consideration the differences among women in rural India because a general
framework has been applied which not always accompany the variation in gender roles
of different places; showing that Indian planners have not realized yet that there is a
diverse culture all over and one thing accepted in one place, may not be accepted in the
other (Biruda, 2013).
Tripathy argued that SHGs should work as pressure entities to address social
issues such as education, health, lack of access to natural resources, etc., but these areas
have been left behind with no or a few importance (Tripathy et al., 2004). Further,
Chakrabarti argues that the movement has still a long way to go with regards to outreach
in order to make a serious change in India’s situation; only linking millions of people
within the banks is not the way of alleviating poverty (Chakrabarti, 2012). At the end, the
groups are informal institutions and this rapid expansion without monitoring has led to
their poor functioning, where women, especially from poor families, are not being
benefited mainly because their lack of economic independence, their fear, ignorance,
powerlessness and vulnerability (Narasimhan, 1999).
Datar and Prakash affirmed that women can’t start with income generation
activities if they lack requisite skills, infrastructural facilities and family support. If
members receive any training, most of the time they are inadequate and there is not
linkage between training and credit/marketing (Datar & Prakash, 2004). According to the
Reserve Bank of India, peer pressure is an indispensable element in SHGs ensuring the
proper use of credit as well as the timely repayment of loans. Even though this technique
can be an effective substitute of collateral, it is also a heavy package for the households
where some of them have preferred to suicide instead of being with that constant pressure
within the village (Brankaerts, 1993, p. 76).
36
The above examination catches the attention to keep studying the aspects of the
SHGs-Bank linkages and their performance focusing on socio-economic conditions of
the women and the impact on their empowerment (Gugerty & Kremer, 2008). With this
review the posed research question to be answered is: Are the women from a Self-Help
Group more empowered than the ones that are not members of any group? Is the
movement benefiting them? The goal is to put in balance the advantages and
disadvantages and see if this initiative reach the poor of the poor, if it accomplishes its
objectives or if it is functioning with “false promises” of eradicating poverty.
2.13. Successful stories of the SHGs
There are numerous stories of poor women that have been successful showing
their entrepreneurial qualities within the SHGs to come out of the poverty cycle as seen
in the following explanation:
a) RIDE NGO: around 10 years back, RIDE started a pilot project with its first
SHG in Musaravakkam in Tamil Nadu where it organized meetings, educated
and empowered women to start their own business within the group. This
village with around 4000 inhabitants, have 35 SHGs and one of them is running
a milk business that is coordinated by a 65 years old lady, mother of 3 sons and
leader of the group. This SHG has focused on giving training to its members in
the field of agriculture and project management which has allowed the members
to buy milk cows getting around 10 liters of milk per day; part of it is offered to
the village and the other part is sold to a government milk farm in Chennai. The
earnings are invested by the women into their family’s income, house-keeping
and new equipment for agriculture.
Figure No. 9: SHG in dairy business
Source: RIDE India, Rural Institute for Development Education, 2015
37
This group has been selected by NABARD as an excellent society and
thanks to this award, its financing bank will offer an extra economic support for
their activities (RIDE, 2015).
b) PRADAN NGO: it formed the first SHG in Alwar, Rajasthan in 1987. In 2003,
a SHG was formed with 14 members in Sosopi, a small hamlet in Jharkhand’s,
West Singhbhum district. The leader of the group is Dadimo with 41 years old.
She used her first loan of Rs. 200 (3,20 USD) for starting a puffed-rice business.
Today, she earns an average of Rs. 2300 (37 USD) every month from her shop
and around Rs. 7000-8000 (113-129 USD) a year from her vegetable
cultivation. Her plans are to purchase bullocks for the field (0,14 ha) and for
hiring them. Recently, she has transferred her son from the village school to the
nearest town. She saves Rs. 100 (1,62 USD) every week (PRADAN, 2015) and
she is an example of how SHGs can help to change lives.
In 2013, PRADAN worked with 18736 SHGs across 7 states with a total
membership of 252.070 rural poor women saving around Rs. 1230 million
(PRADAN, 2015).
Figure No. 10: SHG in India
Source: Professional Assistance for Development Action, 2015
 Other comments
o Gaonkar carried out a study in 5 women SHGs situated in Bardez and
Bicholim taluks of Goa state. The members improved their quality of
life increasing the family income, consumption expenditure, gaining
self-confidence, productive use of free time, improving their talents,
and getting more importance in the family (Gaonkar, 2001, p. 78).
o Kothai found that SHGs have a positive impact on their members
because their confidence level increase being able to talk to outsiders
38
without any inhibition, move to cities and banks without men’s help,
and avoiding any kind of cheating/exploitation by merchants and
intermediaries (Kothai, 2008, p. 45).
o Prasad reported that 90% of women in the SHGs have learnt to write
their names, read, and do simple arithmetic (Prasad, 2000, p. 35).
● On the other side, according to some studies SHGs face problems such
as lack of cooperation, lack of team work among members, lack of
timely support from other organizations, ineffective group leadership,
lack of training in group formation, mismanagement on accounts, time
constraints, lack of decision making, inadequate space to conduct
activities, lack of uniform growth, lack of marketing intelligence for the
new products, and lack of information when needed (Leelavathi &
Aradhana, 2006, p. 25).
● Tejaswini and Veerabhadraiah showed that when the SHG creates
income generating activities the members face some inconvenient such
as getting a good price for the products, lack of common work place
and proper marketing facilities and lack of loans, trainings, and
monitoring on time (Tejaswini & Veerabhadraiah, 1996, p. 39).
2.14. Future plans of the SHGs
The Indian government wants to include in its action plan a policy to encourage
the existing SHGs to explore prospects of leasing or purchasing land in joint ownership.
If this becomes a reality, its mission will be to provide information, financial and
infrastructural support to groups engaged in land-based activities with the goal to develop
the group collective strength (Dutta, 2011, p. 133).
Besides, in order to get technological assistance, there is an initiative to link the
SHGs with the national laboratories, universities and other specialized research
institutions to development the necessary facilities and get information about technology
and communication to benefit the groups’ activities (Smets, 2010, p. 11).
The reviewed literature shows that poor rural women have been able to tackle
some problems through the SHGs and the researchers have been positive about the future
of these groups focusing on the access women can have to financial resources for covering
39
their needs and expanding their incomes. However, in some SHGs the way the members
need to follow to create change for the households and the whole community has not been
clarified, and with this panorama, their future is not clear yet (Galab & Rao, 2003).
According to Mookerjee, the main step that the SHGs should take in the near
future is to get engaged with social activities with health in the first place. In this aspect,
women can organize themselves for campaigns, cleaning the drains, the roads, and build
toilets according to the need of the community with the collaboration of all the habitants.
Later on the second priority could be to tackle with community problems taking actions
in protesting against child marriages, domestic violence, build a community hall, and so
on (Mookerjee, 2006). In another view, according to Bardhan, education should be the
first priority of every SHG. In order to succeed and to create a real “revolution” in the
future, schools should be opened in the villages, there must be distribution of books to
poor children with the collaboration of the government, and the education of women
should be encouraged, among others (Bardhan, 2006). In this way, the SHGs would be
part of the history of the country for a long term delivering positive outcomes to present
and future generations.
It is important to clarify that the future of each SHG is completely different from
each other depending on the level of cohesion and collective action they have at the
moment. Nowadays, for example, NABARD is working in a pilot project for the
digitization of all SHGs in 10 districts across 10 states of the country during the year
2014-15 to improve the quality of interface between SHG members and banks for
efficient delivery of banking services and to avoid problems in manual book-keeping
(NABARD et al., 2014, p. 89). Here the question would be if the SHGs are ready for the
next step in spite of some of them have not even taken the first one.
40
CHAPTER III
CASE STUDY
The government of India and state authorities are aware of the importance of the economic
and social development of rural women. For this, SHGs have become the weapon to fight against
poverty, economic depression, social exclusion, and empower women including them as social
partners, providing them rights, equal education, and health (IFAD et al., 2010). In order to analyze
the situation of these groups and answer the research questions: “Are the women from a Self-Help
Group more empowered than the ones that are not members of any group? Is the movement
benefiting them?” this case study will be based in two approaches: the questionnaire and the
personal women’s stories.
I.
THE METHOD
The case study method has been selected as a suitable tool for the collection and
presentation of detailed information about poor rural women in India being and not being part
of the SHG movement. With this qualitative and descriptive research the goal is to observe
how the life of each member/woman is, for later on, draw conclusions about each group in
their specific context. Although this method has been considered by many to be unscientific
arguing that it is difficult to generalize, relies on personal interpretation of data and inferences,
is based on qualitative subjective data, and the results are difficult to test for validity being
stereotyped as “the weak sibling among the social science methods" (Yin, 1989), it is the
appropriate tool to examine and discuss the situation of the SHGs in Karnataka, helping the
researcher to identify the actual inconvenient, recognize key players and their agendas, and
become aware of the aspects that contribute to the problem. What is wanted is to analyze the
actual level of empowerment of the members of the SHG, develop possible solutions, and
apply the theory that is behind to identify and delineate important factors (Boyce, 1993).
Illustrative an exploratory methods were consider for this study so the researcher could
see how the situation is becoming familiar with it and explaining with common language the
topic in question. To obtain a complete picture of the women, as far as possible, the researcher
has employed a variety of approaches and methods including interviews, field studies, and
participant-observations (Lauer & Asher, 1988). In this case, a small group of participants has
been chosen representing a diverse cross section of the Indian society. The goal is to know the
personal stories of the participants being aware that they can affect the outcome of the study.
41
In this way, the focus is on a particular situation rather than a universal one, giving emphasis
to the exploration and description stages to understand, describe, and evaluate the
characteristics of the women involved with SHGs and the nature of the community in which
they are located including their educational and emotional background, perceptions of
themselves and their surroundings, their likes, dislikes, and so on; what can’t be done with the
large-scale research projects (Gilbert, 1981).
This case study is a comparatively flexible method because it emphasizes in the
exploration rather than the prescription or prediction and the researcher can feel free,
somehow, to discover and address issues as they arise in the observations and to begin with
broad questions and narrow them as the experiment progresses being the appropriate tool for
answering some doubts related with how and why the Self-Help Groups have become so
important for one of the fastest growing developing economies in the world. As the researcher
has no control over the events occurring in this country’s environment, the main point is to
understand these groups’ formation and their benefits with the whole variety of characteristics
that can be found in this particular instance, going from specific to more general terms, if
possible, and offering new variables and questions to the readers for further research
(Hammersley, 1995).
Following the advice of Cynthia Selfe who argues that a combination of several
methods should be used to gather data in any study, it is based on different sources of
information such as: documents, interviews, direct and participant observation that work as
multiple fonts of evidence to increase the reliability and validity of the data what does this
case study more convincing and accurate (Selfe, 1985). Cross checking data from multiple
sources will provide a multidimensional profile of composing activities in these particular
villages. It is important to note that in this study, as in any qualitative research, while it began,
some new key factors emerged during data collection such as the linguistic features which
became evident only during the research. This is why in the whole case study the researcher
was aware for particular observable characteristics that could be useful for later interpretations
(Fidel, 1984).
Additionally, being a good listener to assimilate new information without bias has been
one of the main concerns of the researcher. Being able to hear the exact words used by the
women (terminology reflects an important orientation) capturing their mood and how they
perceive the world was a valuable data that has been recorded for future analysis and
42
conclusions (Cooper, 1984). Interviewing key persons according to their availability of time
much more with open-ended questions, have allowed to make further observations in their
real life activities where as an intruder to that world, the investigator has to act as an observer
or even as a participant, constraining the own behavior but not the one of the people being
interviewed. The goal is to have guided conversations rather than structured questions, know
the other’s opinion about certain events considering them as informants rather than
respondents (Armisted, 1984).
Something to keep in mind is that the collection of data is not merely a matter of
recording it in a mechanical way, rather, all the senses are present here. But all of these efforts
will not work if the researcher does the study only for substantiate a preconceived position
being closed to contrary findings. In addition, the scholar has to realize that the place of the
study is unknown so it is necessary to have all the appropriate resources “just in case” such as
computer, notebook, camera, and so on. Audio-types can provide a more accurate rendition
of any interview, however, if it is not comfortable to the respondents, it has to be avoided.
Instead of that, some pictures of the site can be taken showing important characteristic of the
villages (in some cases, permission is needed). If pictures and recording are not allowed, notes
constitute the most important component of the data base where writing down the results of
interviews, observations or document analysis are the clue (Taylor & Bogdan, 1998).
Finally, the researcher has to be organized and make a clear schedule of the data
collection activities within specific periods of time. Going to the site is the perfect opportunity
to observe directly and provide additional information about what is being studied. As Park
suggested, the researcher will view the constant experiment of human experience “getting the
seats of the pants dirty in real research" (Merriam, 1985).
This case study, as the others, is generically a story which tries to present the concrete
narrative detail of realistic events that women with and without a SHG live and have lived
during time (Boehrer, 1990). The report is mainly descriptive focusing in the most problematic
issues referred by the women. For making this research more reliable, the personal integrity,
sensitivity, and possible prejudices and/or biases of the investigator have been taken into
consideration as well as avoiding premature conclusions before finishing and analyzing the
findings. Seeking to understand as much as possible about the women’s SHGs, this case study
specializes in "deep data" that can give results to this research with a more human face, in
what the researcher is interested, reducing the gap between abstract research and concrete
43
practice by comparing the firsthand observations with the results obtained through the
questionnaire that will be detailed later on (Merseth, 1991).
1.1. Need of the study
Alleviation of poverty is still a challenge for India where the government has
applied some anti-poverty programs in rural areas to create self-employments and
improve basic services, health and education (Rajani, 2005, p. 67). In view of the above,
there is a need for an exploration of the development of SHGs and their contributions in
the path against poverty and women empowering. For this, the research will be guided in
a way to answer if the women from a Self-Help Group are more empowered than the ones
that are not members of any group. Once this question can be clarified, it would be also
positive to see if these benefits are significant enough so the members are encouraged to
continue with this project. Several studies have attempted to measure how empowered
can be a rural woman being part of a SHG, however, it was not found any research
comparing groups of women with and without a SHG to see how developed is this sense
of gaining extra power. In this way, this work is needed to contribute, in a small scale, to
the studies of rural development related with gender, microfinance and empowerment.
1.2. Area of study
Karnataka state is one of the pioneers that started micro credit activities in the
form of SHGs in rural areas. MYRADA NGO introduced this concept launching micro
credit activities in some of the 28 districts of the state, including Mandya and Hassan
(Raghuprasad, 2004, p. 12). This is one of the reasons why these districts were
purposively selected for this study with the assumption that the impact of the SHGs is
significant for women empowerment.
This state is characterized by marginal and small landholdings for agriculture (less
than two hectares) (Ministry of Agriculture and cooperation, 2006). About education, in
2011 it ranked 11th among the 29 states with 75,6% of literate people (female: 68,1% and
male: 82,8%). In the same year, the rural poverty line was established at Rs. 902 (around
15 USD) per month per person and one fourth of the population was below it (GOI et al.,
2013).
44
Figure No. 11: Map of India
Karnataka state
Mandya district
Hassan district
Bommanayakanahalli village
A Chalenahalli village
Source: Author
45
The areas of the study are located in the districts of Mandya and Hassan in the
South East of Karnataka. They belong to the dry zones classified as tropical semi-arid
areas. Mandya district is located around 130 km from the capital and economic center,
Bangalore. It has a population of 1’805.769 people with 82,9% rural. For every 1000
males there are 995 females. Female rural literacy is 62,54%. Population density is 356
people per square km. 56% of cultivable area is irrigated. The most important crops in
terms of area sown are paddy (rice), ragi (finger millet), pulses and sugar cane. Coconut
and areca nut (betel) are widespread too (Government of Karnataka, 2013). In this district,
Bommanayakanahalli village was selected purposively for the research.
On the other hand, Hassan district is located around 185 km from Bangalore. It
has a population of 1’721.669 people with 82,3% rural. For every 1000 males there are
973 females. Female rural literacy is 68,6%. Population density is 251 people per square
km. 58,6% of land is irrigated. The most important crops in terms of area sown are paddy
(rice), ragi, maize, pulses, tobacco and sugar cane. Coconut, areca nut and cashew are
widespread too (Government of Karnataka et al., 2013). In this district, A Chalenahalli
village was purposively selected for the research.
Table No. 10: Main information of the districts
Information
Detail
District
Mandya
Hassan
No. of taluks/blocks
7
8
Mandya, Maddur,
Hassan, Alur,
Malavalli,
Arkalgud, Arsikere,
Srirangapatna,
Belur,
Krishnaraj Pet,
Channarayapatna,
Pandavapura and
Holenarasipura,
Nagamangla
Sakaleshpura
No. of villages
1369
2559
Area (Sq. Km)
4962
6845
Total population
1’805,769
1’721.669
Urban population
308.362
304.673
Rural population
1’497.407
1’416.996
Population density/sq. km 356
251
Population growth rate
2,38%
9,66 %
Sex ratio (per 1000)
995
973
Literacy rate
70,40%
76,07%
Male: 78.27
Male: 83.64
Female: 62.54
Female: 68.60
No. of households
428.625
364.806
No. of existing NGOs
20
12
Women SHGs
1197
5317
Source: Indian census data, 2011
46
II.
METHODOLOGY
2.1.Questionnaire
For measuring the level of empowerment of Indian women that are part of the
selected Self-Help Group, this research used a questionnaire including the following
points (Annex 1):
A. General information
B. Economic situation
C. Farming information
D. Self-help Groups
E. Women empowerment
The first version of it was pre-tested with 10 women of Bommanayakanahalli
village in Mandya district in order to assess the feasibility and reliability of the questions
and identify possible mistakes. Based on the gained experience during this process and
taking suggestions, corrections and modifications were done to ensure that the
instructions were clear to have the final version with mostly closed-ended questions. The
questionnaire was in English and it was translated orally to Kannada, the native language
of the state, by the translators when the surveys started.
The goal was to do a comparison of two groups of rural women being and not
being part of a SHG to determine if their level of empowerment is higher when they are
part of a group. Therefore, 25 women of each village were selected having a total sample
of 50 women. For this, purposive sampling technique was used.
Before conducting the interviews, the leaders of the community were contacted
for getting information about the group and to see if it was possible to consider the village
for this research. The aim of the study was explained to them and they provided
information about SHGs and women’s activities in an informal way. This contact was
positive to gain confidence among the villagers for establishing trust between the
researcher and the other members of the group overcoming suspiciousness towards the
scholar as a stranger (Atkinson & Flint, 2001, p. 3).
47
One of the milestones of this research were the translators. They were five local
Indian young people, two of them from Bommanayakanahalli village that has no SHG.
They were a doctor and a PhD. Student (Agricultural Economics). The 3 other were from
A Chalenahalli village which has a SHG. They were university students of Agricultural
Engineering and all of them are native from these villages. They assisted the researcher
during the whole interviews. It was important to find female translators because women
behaved openly towards them and male translator was useful to gain confidence in the
village (Sivakumar, 2012, p. 5).
Before starting the data collection a short introduction about SHGs was given to
the translators focusing in the main objectives and purposes of this study. In addition,
each question was clarified one by one to avoid misunderstandings. Despite all of this,
this research could have some bias because of the different interpretation of the
interviewer and translators influenced by their culture and understanding (Mack, 2011, p.
35).
2.2.Surveys
The interviews were conducted to Indian women individually attempting to
determine their empowerment level when being and not being part of a SHG. This data
was collected during March and April, 2015. Production, resources, income, leadership,
and time were the followed domains in the surveys (Alkire, 2012, p. 7). Additionally,
semi-structured interviews were done to gain information about women’s social
participation, household decision-making, mobility, economic security, ability to make
small-large purchases, and collective action. They were conducted after the
questionnaires so women felt more comfortable encouraging open conversations about
their life experiences (Valentine, 2005, p. 34). As a researcher, staying in the village with
the leaders helped to be an observer of the community activities avoiding the position of
outsider.
One of the limitations of this study was the inability to conduct detailed interviews
with women in the presence of men because some of them did not feel comfortable with
men around and it impacted their answers and behavior. Men were often curious about
the purpose of this research when income and expenses questions were done. Time did
not make possible to go back and meet women again when they were alone.
48
The investigation journey started in the village without a SHG where women that
were available in the field or in their houses were called to the place where the researcher
was to start with the surveys. If they were not free, they went later or the next day. In the
second village, the leader of the SHG called to all the members of the group to her house
and due to here there are 3 SHGs, it was possible to have more than 15 women. In both
places not all the women were available and not all of them wanted to be interviewed. If
they were busy, the researcher and translators went to their houses, when allowed. The
living room, kitchen or the field were useful places to talk and avoid a possible male
involvement, but in some cases, men were useful for answering technical questions
regarding production that women did not know or did not want to answer.
Each interview took around 40-50 minutes. Having the idea of building a
relationship with the respondents and get their complete attention, general and
unthreatening questions were used at the beginning leaving the more sensitive and
personal issues for the end. Some reasons of being and not being part of the SHG were
shared. Any additional information was written down and it is available for the data
analysis. Video recording was planned to be done but women did not agree because they
wanted to avoid any kind of exposure, argument that was respected by the researcher. In
general, all the interviewed women were willing to share their life experiences. Somehow,
it was felt that in the first group women were more open to speak and share time, what
was not seen in the second one mainly because of time constraint, but the SHG members
seemed more disciplined trying to hear with attention every detail, while in the first group
some women were not interested about this research and left the place of meeting
whenever they wanted.
When women were alone, they seemed more relaxed and open to share
information, so much that in one occasion the longest interview was for more than 2
hours. However, language was a huge barrier. Being the researcher I wanted to know
every detail, every feeling of women, how they see their lives, if they were happy, if they
would change something, but once the thoughts were translated from Spanish to English
and then from English to Kannada, it was felt that the main essence was lost because the
language was not communicating the same of the eyes of the women. Some basic things
were understood by the scholar who tried to learn their language, but it was not enough.
49
2.3.Data Analysis
After the survey was completed, the collected data was reviewed to avoid
unanswered questions. Later, it was carefully scrutinized, processed and analyzed. The
results were tabulated on the computer to show how the total sample responded to each
question. Some statistical techniques such as frequency, percentage, and mean were used.
2.4.Limitations
This study is a student’s research work and hence, there is a limitation of time,
money and other resources. Considering the more than 46000 (Manjunatha, 2013, p. 24)
SHGs existing in Karnataka, this sample is very small and not representative because it
was confined just to two villages of the state. The report has been prepared based on the
data collected from the field and published secondary documents, thus, the findings could
not be generalized for other areas but they can be useful for having an idea of how things,
visions, and objectives can change from place to place. Moreover, the research is based
on the opinion of the women (respondents) which can have some level of subjective
perception and bias. It is important to keep in mind that the obtained data refers to one
point in time.
For future researches, it would be recommended to improve the tools to measure
women’s empowerment and to try to implement them in monitoring and evaluation
practices.
50
CHAPTER IV
RESULTS AND DISCUSSION
I.
SURVEY FINDINGS
1.1. Description of the sample
After the scrutiny of the data, it was found no significant differences in the marital
status, religion, caste, and labor-force participation of the women. All of them are
married, Hindu, belong to the Shudras caste (cattle herders, farmers, artisans, and
merchants), and they came to the villages after getting married to stay with their husbands.
Their natal places are in the same state but in different locations. Their average age is 44
years old with 4.5 family members per household.
In a general view, these women are poor, not necessary living below the poverty
line, but poor at the end. The average income of this sample is Rs. 112900 (1821 USD151,75/month) per year derived mostly from agriculture with an average land size of 2,7
acres (1,1 ha), owned by men (household’s head).
o Education level
Women of this sample are mostly illiterate with 48%, 44% have some kind of
primary school and 2% have some undergraduate studies.
Table No. 12: Education level of the members
50%
48%
44%
40%
30%
20%
6%
10%
0%
ILLITERATE
SCHOOL
2%
SECONDARY UNIVERSITY
Source: Author
o Women’s activities
Women are engaged in various occupations for earning their livelihood,
mainly in agriculture, their main duties are:
51
Table No. 11: Main activities of the women
Agriculture
Livestock
*Field preparation
*Milking and processing
*Transplantation
*Feeding, washing and providing water
*Manuring and weeding
*Cleaning sheds
*Harvesting and storage
*Preparing field manure
*Threshing, winnowing and grinding *Birthing/veterinary care (sometimes)
Household
Collection
*Cooking, cleaning and mopping
*Fuelwood
*Maintenance of house
*Water
*Child-rearing, care of elderly and sick *Fodder
*Food preservation
*Others (medicinal plants, etc.)
*Weaving and stitching
Source: Author
Some of the women agreed that when the situation is bad in agriculture (bad
harvest), they will work outside home, even if this practice is highly criticized within
the community. Most of the time they will stay in the same villages helping in the field
or cleaning houses for what they can get around Rs. 150 per day (2,4 USD), depending
on the duties. All of them wish to have a paid employment because “it is easier than
agriculture”, they said.
Sudha, in his study in Kawadipalle and Anazpur in Andhra Pradesh (southeast) concluded that women are the major contributor in supply of labor for farm and
home activities (Sudha, 1991) which matches with the pattern of this sample. During
the day, they will spend 6 to 7 hours in farm works, 2-3 hours cooking, 1-2 child care,
1-2 cleaning, washing, etc., 1-2 hours for the cattle, 0.3-1 hour for water collection,
and 6-7 hours to sleep with almost no free time.
o Ownership of livestock
Livestock is owned or controlled by men, but women handle their care and
grazing, collect fodder and water for them, use their manure in the fields, process/sell
their milk, and clean their sheds. Each household has an average of 2 cows/buffaloes,
figure that agrees with a study done by FAO in 2012 that showed that poor Indian rural
families have 1,5 cows/buffaloes average (FAO, 2012, p. 2).
o Farm production
The main crops that are produced in both villages are: rice (paddy), ragi,
sugarcane, and coconuts. All of them are for commercial and self-consumption
purposes and they are sold directly in the market or in the stores with no intermediaries.
52
o Loans
In the first village, women do not know anything about how to get a loan or the
quantity their husbands need for the field. They have a general idea but they are not
able to give specific numbers. Their husbands will ask for money to the family, friends,
community lenders or cooperatives. The last option will be the banks because they ask
for lots of documents, and in some cases, for some collateral like gold or land/house.
That is why men prefer to go to the community lenders because the process will be
easier and they will get the money in 1 or 2 days. On the other side, in the other village,
every time that households need money, women members can approach to the SHG
and request it.
The purposes of the loans in the two places will be mainly for agriculture,
households’ consumption, livestock, health, house repairs, education, festivals, and
marriage celebration. The households with loans feel an extreme community pressure
for paying it back on time. Public shame is something that terrifies them. Within the
SHG all the members will know which person is in debt because the request is done in
the meetings, and in the other village, neighbors will know which household has a loan
because the bank staff/community lender will visit the borrower. For all of them having
the installments on time is directly related with honor and pride among the villagers.
o Decision-making
Living in a hierarchy society such as India, certain key areas of decisionmaking are for men in their capacity as household heads while women are considered
the mothers, wives, daughters and so on. Within the families, the purchase of food and
decisions related with children's health are in women's arena, while decisions related
to the children education, purchase of major household goods, disciplining the
children, and market transactions tend to be in the male side.
All the women of the sample, with no exceptions (even if they already took a
decision), will talk and consult to their husbands about all sorts of issues because they
consider men have to know all the details about their family. Often, women are not
able to speak up or act as they want if they disagree with their husbands since they are
used to the authority of their “senior”, situation that is worst when women are less
educated or much younger than the husband.
53
Regarding to crop production men are the key decision-makers within the
studied households. According to some studies, 72% of the men in the households take
decisions about marketing the crops without consulting the woman. The same occurs
in the area of family planning where women feel shy to talk about it because their
objective is to make their husbands happy with children at home, so men have the last
word of the number of children to pro-create. In India, only 3% of SHGs’ members
report any participation in this field. As Fierlbeck said, women would expand more
their ability to make choices if they view themselves as individuals rather than
members of a social group (Fierlbeck, 1996).
1.2. Common patterns
Every time that women need to buy something, mainly food or medicine, they
have to ask for money to their husbands since most of them do not have any income. The
ones that keep their earnings from livestock make use of their money mainly for
household expenses, clothes, jewelry and gifts for their relatives. As Jackson affirmed,
there is a need to see the women less self-sacrifice for others and start thinking about them
(Jackson, 1996, p. 497).
1.3. Main findings
A. General information
The women of the group belong to the 32% of the SHGs’ members that are
above the poverty line but vulnerable to risk (NABARD et al., 2014, p. 87). Even
though the women of the other village have a similar economic condition, they do not
have a SHG because the promotors of the movement have not considered their
community under the “urgent needs” area and neither any woman has pointed out this
alternative to improve their actual conditions because they do not want to involve in
any association. They said that they have already enough work to do, time is not
enough and they were not very sure about their saving capacity, the restrictions their
husbands might impose, and the personal conflicts they could have with other women.
o Age
The age of the majority of the women members of the SHGs in India varied
from 22 to 41 years, group in which the members of this sample are included. The
women of a SHG have an average age of 41 years old, the youngest with 27 and the
54
oldest with 63 years, while in the group without a SHG, the average age is 48, the
youngest with 30 and the oldest with 70 years of age. This somehow could give the
idea that the younger the women, the bigger the desire (or the pressure) of pooling
efforts for working together for a common goal.
o Family size
The average family size of the two villages is 4 members of which two are
engaged in farming activities. In the group without a SHG, the average of adults per
household is two and children one, while in the SHG the average of adults and children
is two. These results match with the findings of Manimekalai and Rajeswari who did
a study in Tiruchirapalli and karur districts of Tamil Nadu (south-east) where each
household had around 5 members in the family. In general, the average of the country
is 4.8 people per household (Indian census et al., 2011).
Detail
Family size
*Adults
*Children
Members in farming
Table No. 12: Family size
No SHG
SHG
Mean Min Max Mean Min
4
2
10
4
3
(3)
2
8
(2)
2
(1)
0
3
(2)
0
2
1
4
2
2
Max
8
5
3
3
Source: Author
o Education
In India, 51% of the members of the SHGs have completed at least primary
school and 49% are illiterate (Kaur & Singh, 2012). In this case, the level of education
of the SHG members is higher than the non-members: 52% of the women have some
schooling years, 12% some secondary education, 4% some University years
(unfinished), and 32% are illiterate, while in the first village, 36% of the women went
to school (not finished) and 64% are illiterate.
In the SHG, the only person that has some higher education is the actual leader,
Komala. She started the University in the career of Agriculture Engineering but after
1 year she quit due to economic issues. In the whole country, leaders are more likely
to have some schooling compared to overall members. Nevertheless, the majority of
them are also illiterate (60%).
55
Figure No. 13: Education level of the sample
70%
64%
60%
52%
50%
40%
32%
36%
No SHG
SHG
30%
12%
20%
10%
0%
0
ILLITERATE
0
4%
SCHOOL SECONDARY UNIVERSITY
Source: Author
o Sources of income
For both villages the main source of income is agriculture. In the first
community, 44% of the households are engaged in dairy and butter production, 16%
in own business (transportation and restaurant) and 8% in others (housekeepers). In
the SHG the figures change a bit, 32% of the households are engaged with off-farm
activities (construction, transportation, education), 28% with dairy products and 16%
with others (housekeeper, slave).
Figure No. 14: Main sources of income
100%
100%100%
80%
60%
32%
40%
28%
16%
20%
0%
44%
AGRICULTURE
OFF-FARM
ACTIVITIES
No SHG
8%
ON-FARM
ACTIVITIES
16%
OTHERS
SHG
Source: Author
o Size and ownership of land
According to Sundaram, the majority of rural people own less than 1ha of land.
In this case, the average land holding is 1 ha per household. In the first group the
biggest land size is 2has, while in the second one, it is 3has. In the entire country this
situation is a challenge for agriculture since the land holding (1.24ha average) is
decreasing day by day as well as the farmers’ capacity to invest on it.
56
Table No. 13: Average land size in the villages
No SHG
SHG
Detail
Mean Min Max Mean Min
Farm size (acres)
3
0,5
5
2,60
0,5
*Hectares
1,2
0,16
2
1
0,16
Max
8
3,2
Source: Author
All the land is owned entirely by men, the households’ head, proving that
women’s access to this resource is very restricted, even when they are part of a SHG.
One of the main reasons is the patrilineal society in which they live where women do
not have social rights to land, even if they have legal ones. Another reason is that
women are perceived as farming for subsistence so they do not have the “necessity” to
own land, while their male counterparts are considered as farming for income and the
market, so they have to own some land (Farnworth & Jiggins, 2006).
B. Economic situation
o Annual income
The village without a SHG has a higher income than the one with a SHG and
this could be one of the reasons why the SHG movement has not arrived there yet.
These households have an average income of Rs. 140000 (2258USD-188,2 per month)
while in the SHG the average is Rs. 112900 (1821 USD-151,7/month).
C. Farming information
o Production
Figure No. 15: Main crops in the villages
100%
80%
72%
60%
84%
40%
40%
80%
76%
48%
36%
44%
20%
0%
RICE
RAGI
No SHG
SUGAR CANE
COCONUT
SHG
Source: Author
In the first village, sugarcane is the main crop with 76%, followed by rice with
72%, coconuts with 44% and ragi with 40%. The average production within the year
of rice is around 15 quintals, ragi 10 quintals, sugarcane 66 tons and coconuts 6800kg.
57
From these, about 11 quintals of rice, 8 quintals of ragi, 66 tons of sugarcane, and
6681Kg of coconuts are sold during the year as average.
In the second village with a SHG the main crop is rice (84%), followed by
coconut (80%), ragi (48%) and sugarcane (36%). The average production within the
year of rice are 14 quintals, ragi 12 quintals, sugarcane 50 tons and coconuts 5620kg.
From these, around 13 quintals of rice, 10 quintals of ragi, 50 tons of sugarcane, and
5620kg of coconuts are sold during the year as average.
The selling prices for both places do not vary much because they are fixed by
the government of the state. Rice will be sold at Rs. 1400 (22,60 USD) per quintal,
ragi at Rs. 1.500 (24,19 USD) per quintal, sugarcane at Rs. 2.300 (37,10 USD) per ton
and coconut at Rs. 30 (0,48 USD) per kg (Government of Karnataka, 2015). In the first
two crops, the SHG village has higher levels of production and selling but for
sugarcane and coconut, the first village is more efficient in their production and
therefore, they sell more.
According to the women, last year the harvest was bad because the monsoon
was really hard and destroyed part of the plantations. This is an irrigated zone because
usually water is scarce, but they affirmed that weather is changing considerably and
they are not prepared for that. “The weather is or too warm or too cold, it is becoming
difficult to find a middle point” (Indra, 38 years, SHG).
o Livestock products
In both villages all the women are in charge of dairy and some of them produce
butter and sell these products. Even though these activities are done individually, the
option to get together in the future and pool efforts and resources has not been deleted.
In Bommanayakanahalli, women are completely in charge of the house and
animal husbandry. They have 1-2 buffaloes/goats for getting milk for household
consumption (60%) and the surplus is sold to the market, local stores or dairy
cooperatives (Rs. 21/liter-0,34 USD). The average amount of milk production is 2,8
liters per day. Women are not members of any cooperative or group but 7 out of the
11 that sell milk, have already started with butter production (Rs. 100/kg-1,6USD).
58
Selling these products they have been able to have their own income and savings.
However, 6 of them give the entire extra income to their husbands.
In A Chalenahalli, the panorama differs a little bit. As every SHG in India,
some members have directed their efforts for improving the milk collection. The
average milk production is 2,6 liters/day and here just one women is producing butter
for selling. The main difference is that the 7 women that sell milk and butter manage
and control their income without giving it to their husbands; the others 18, do not
produce enough milk for selling. The work of these women is essential for the
household economy and mainly for subsistence needs (Bennett et al., 1993).
Table No. 14: Livestock products’ income
Detail
Resp.
%
11
44
14
56
Livestock income:
*Yes
(USD)
*No
No SHG
Mean Min
Max
Resp.
%
296
(4,8)
452
(7,3)
7
28
18
72
210
(3,4)
SHG
Mean Min
Max
221
(3,6)
373
(6)
105
(1,7)
Source: Author
D. Self-Help Groups
o Meetings
One of the key points for the success of the SHG is the full commitment by the
members to follow the rules. The average meetings attendance in the region is 70%
because for women it is difficult to find free time during the day to go to the meetings.
Sometimes, they prefer to pay the penalty, but in this group 90% of the members
attend. “Even though the meetings are agreed by everyone, time to time unexpected situations
can happen” (Latha, 42 years old). When women have to leave, their daughters, sons
or husbands (in that order) will help in the house or field duties. Mainly their families
will collaborate because they are afraid that when they need a loan, the group will not
give due to the absence of the meetings.
o Keeping of records
The level of education of the members is an important characteristic for the
correct and positive functioning of the group because it impacts in the maintenance of
records, development of schemes, linkage with banks, etc. For this group, as for the
others SHGs in the country, having illiterates is not a barrier for keeping the records
in an organized and tidy way. When it is necessary, the woman in charge can get help
59
from her husband or an educated family member. All the members are aware about the
importance of keeping the records updated with clear accounts in a responsible
manner, if not, it can generate some problems and the confidence of the members can
reduce. A research found that only 15% of the SHGs have good quality records
(complete and updated) and 39% have them in moderate quality, (updated with some
errors). This SHG is located in the first group. The members agreed that these
documents are kept properly and available whenever they want but almost half of them
have not examined them during the last six months.
o Loans
88% of the members of the SHG have cut the dependence on moneylenders
thanks to the group formation, but 12% still rely on them because the amount of money
from the SHG is not sufficient or the process is slow taking nearly two weeks. The
bigger the necessity, the bigger the desperation of getting money from any source.
These loans are for diverse purposes but mainly they are used for agriculture (31%),
household consumption (15%), and livestock (9%). Other areas include education of
children, purchase of land/farm machinery, and wedding celebration.
Within the group, 88% of the women take the decision to borrow money jointly
with their husbands and 12% completely or mainly by themselves, figures that show
some kind of progress. However, 80% of them “lose” control over the loans what
confirms the doubt if women’s access to credit has any significant transformation for
their lives. When the loan is used for another purpose than the expressed in the
application form, the leader will talk to the member to see why this happens. Most of
the time, the members will not reprove this action because they understand each other’s
reality: “When you are poor, “sometimes” you have to be out of the plans”-Ashwini, 27
years old. If the loan is paid on time, no one has objection of how the money is being
used. At the moment of the interview all the members had a loan and none of them
have had any problem with delays or defaults.
More than 80% of the women’s SHGs after 3 years of existence are still
dependent in promoting institutions for getting credit/loans but in this case, it is not
like that. Until July 2015, the SHG’s balance was around Rs. 500000 (8064,5 USD).
Even though the amount can be considered low, for the women this is a huge step
60
because they have realized that “even being poor, it is possible to save”, Sumathi, 30
years old, situation that they became aware when they started in the group.
o Reasons to join
Figure No. 16: Main reasons to join to the SHG
8%
Loans
Women empowerment
100%
Source: Author
The main reasons to join are the economic incentives such as getting loans with
a low interest rate and for learning the savings-habit. Social reasons such as interaction
with other women, cooperation among members, acquiring new knowledge and skills
have influenced as well but in a minor way. According to some researches, 35,2% of
women of SHGs joined for economic purposes and 38,7% for social ones. Women
shared that at the beginning their families were not sure about the objectives of the
group and they were not going to be permitted to join if it was only going to provide
educational or social benefits; the decision of joining was taken when getting credits
was part of the program.
Since the creation of the group there has not been any dropout. Actually, 50%
of the SHGs of the country have no dropouts; in Karnataka the drop-out rate is 15%
and in other states it is even under the 10%. The members recognized that this
achievement is thanks to the actual leader, Komala because she has encouraged them
to be together and keep saving since the creation of the group. Others however, stated
that they have to be together if they want loans to continue.
61
E. Women empowerment
o Savings
All the women have a great desire to save any amount of money they might
have in order to break the dependence of the moneylenders or other informal sources
of borrowing for meeting their emergent needs. Their savings come from the dairy
activities or from keeping the change of the daily or weekly amount of money they get
from the household head. Although the quantity is almost “nothing” (average Rs.
5/day-0,8USD), it has helped when there is an emergency.
In the first village, 24% of the women are able to save some quantity of money
mainly in daily bases, while the 76% does not do it because they do not think for
tomorrow as they live in today (short time vision); so saving is not at all a part of their
life. Some women said they have tried but at the end they could not keep this habit and
they stopped. In the second group, 44% save something apart from what they deposit
in the SHG. Even though it could be said that these women have already the habit to
save, still more than half, 56%, do not save any extra amount. They agreed that the
weekly deposit for the group is difficult to get and even worst for an extra saving, but
if they would be able to do it, they were ready to start.
Table No. 15: Quantity of women’s savings per week (Rs.)
No SHG
SHG
Details
Mean Min Max Mean Min Max
Own savings (Rs.)
38
12
60
56
23
100
(USD)
(0,6)
(0,2) (1,0)
(0,9)
(0,4) (1,6)
Source: Author
On the other side, being part of a SHG can’t assure that women will keep the
saving’s habit if they decide to leave the group. In this case, 68% of the members will
continue saving even leaving the SHG, 3% will not do it, and almost 30% was not sure
about it; figures that prove some kind of change in their habits but there is the need to
keep working for that percentage that is not sure yet about the importance of savings.
o Bank account
88% of the women in the first village does not have a bank account. Indeed,
some of them do save, but they keep the money at home because they are afraid about
the process they need to follow in the bank for opening an account. Lakshi, 60 years
old, tried to open an account but the bank sent her back because she was not part of
62
any group. Only 12% has it and they feel glad about this step they gave. “With every
deposit I make, I feel the most powerful women in this world”-Bharathi, 43 years old.
Figure No. 17: Women holding a bank account
100%
88%
100%
80%
60%
40%
0
12%
SHG
20%
0%
No SHG
Yes
No
Source: Author
This situation changes totally in the SHG because all the women have a bank
account. They opened it once they joined the group (2005), otherwise maybe their
situation will be the same as the first village. Some studies have shown that almost
80% of women did not have savings account in any bank before they joined a SHG. It
is important to clarify that not all of the women with an account can manage their
savings as they wish. Most of the time if they want to take money out, they consult to
their husbands/sons first to see their opinion or even ask for permission.
o Decision making
In the first village, only one woman (Bhagya, 45 years old) takes decisions
about crops and their marketing because her husband is working in another state
(restaurant), while in the SHG, three women are already taking some decisions about
production jointly with their husbands or sons (Komala, Lakshmidevi, and Poornima,
41, 36, 38 years old, respectively).
No.
1
Table No. 16: Decisions’ taker
No SHG
SHG
Detail
Resp.
%
Resp.
In the farm
*Woman
1
4
3
*Man
21
84
22
*Son
3
12
0
%
12
88
0
Source: Author
Within the households of the SHG’s members, women’s role for taking
decisions are more active in the areas of house repairing, kitchen arrangements, clothes
63
and health of children, settling marriages, livestock acquisition/selling, and family
events. 48% of the members of the SHG feel that they are more taken into account by
their husbands in those areas and little by little they are able to take some decisions by
themselves, while in the first village, 16% of the women can contribute with their
opinions and influence regarding the education and health of their children (mainly for
girls). These women are the same ones that keep the dairy income with them.
o Self-confidence
During the interview the researcher was not sure if the behavior of the women
from the SHG was more confident than the women of the first village. In general,
women did not seem shy while interviewing them. It was seen that the older the
women, the opened they were to share their experiences.
44% of the members of the SHG believe that their communication skills have
improved, as well as their quality of live, social status, and self-confidence, and now
they feel more respected than before, not only in the village, but within the family.
Since they are part of the group, they are invited by neighbors/family to social
functions which never happened before and this has increased their self-esteem.
o Leadership
Both villages are missing women with good leadership skills acting as a motor
of change in the communities. It is possible that some of them have these
characteristics, but in a way, they are not showed or used for communal development.
However, this situation could change; in the SHG, for example, in 2016 the members
will elect a new leader and one of them want to have this position.
o Collective action
SHGs are the place where women can work together for solving or improving
social issues that affect them. Nevertheless, following the pattern of the country, this
group is not dealing regularly with these issues. Only 12% of the SHGs had taken up
problems such as domestic and sexual violence, prevention of child marriage, and
support for separated women. In both villages, for example, there are problems with
alcoholism but nothing has been done yet.
64
In India 43% of the existing SHGs have worked for improving the water
supply, education, health care, veterinary care, and village roads; and another 12% has
worked for protecting the natural resources. In this group, no changes were found
because nobody has taken the lead to start working for achieving positive outcomes
within the village. Somehow living in the conditions they do is normal and they are
used to it. The scenario changes when social events have to be organized because in
that case, most of the women are happy to collaborate in common festivals like the
Independence/Republic Day, the anniversary of the group, birthdays, weddings,
among others. Here the women organize what to cook and decide the place of the
celebration. Even though these kind of programs are important due to their
contribution for unity and mutual respect among the villagers, the same spirit is not
used for taking initiatives as a group and improve the problems the communities have.
o Mobility
Almost 60% of the non-members and 16% of the members rarely leave their
homes/villages. Since they do not get any training, educational centers and agricultural
offices of the district are not places they visit at all. In this way, they are restricted
because they are not able to get information about market prices, farming techniques
and so on.
o Awareness
Being aware of what is going on around is important for taking decisions and
actions. On average, 80% of the SHGs are aware of their rights, mostly related to
gender and children, but only 12.5% of the knowledge comes through the SHG system.
Mostly NGOs are in charge of imparting training to women about health issues,
personal hygiene, communicable diseases, effects of malnutrition, environmental
issues, sanitation, and government programs, but this kind of training is not given in
any of the studied villages.
36% of the members compared with the 20% of the non-members have some
knowledge, not so clear, about the government anti-poverty programs, the credit for
small farmers, and the capacitation they could get in agriculture. According to them,
the government has a lot of programs that are not offered “in a real way” because they
are organized and carried out in unreachable places for rural women.
65
o Skills/training
According to Deshai and Joshi, the exposure to training services helps to
increase the access to labor and credit markets (Deshai & Joshi, 2013, p. 493). In India,
poor rural people are encouraged to undertake income-generating activities to grow
socially and economically and become progressive citizen of the nation. For this, the
government and other institutions provide training programs for transferring the
necessary knowledge, motivation and competence that poor people, mostly women,
lack. Nonetheless, women of the first village have not received any training at all, and
in the second group, no training is provided mainly because the members have not
showed interest for learning more, any organization has included them in the national
campaigns, and Komala, the leader, has not approached to the promoters of the SHGs
for being considered for these events.
Some NGOs and other government officials organize once or twice a year some
kind of trainings open to every member of the SHGs, non-members are not considered.
These sessions are far from the villages and women do not have the means to go. The
main topics are proper accounts keeping, self-management, decision making, income
generation activities, etc. with the objective to get unconventional skills or technology
knowledge for helping in the marketing arena, legal issues, accounting, and so on.
However, leaving behind the female area and including men in these trainings for
changing somehow their preconceived notions, are some initiatives that are missing.
Within the SHG 60% of the members know how to update and fill the books’
records and 68% are able to perform bank transactions easier than before not due to
training, but to practice and experience. The only two persons that have received
training when the group was formed were Komala and Kumari (the book keeper),
mainly in the topics of how to run meetings, maintain minutes, manage group accounts,
and monitor the group’s activities.
o Domestic violence
As in every poor rural place, lack of education and “macho” societies 4 have
permitted that verbal and physical abuse by men against women be considered as
normal. For the women in these villages domestic abuse is something about life. If
4
Society in which women are considered inferior than men
66
they do not suffer from it with their husbands, their mothers, daughters, sisters or
neighbors have done it.
Kabeer has found that women's increased contribution of resources led, in a
great majority of cases, to decline levels of tension and violence within the households,
but in other cases, providing resources to women and encouraging them to maintain
control over them have provoked violent behavior in men, because they feel their
authority over their wives is decreasing (Kabeer, 2001, p. 155). In these villages, when
women have tried to gain economic independence, they have faced opposition and
experienced higher levels of stress and tension at home what have forced some of them
to stop it for not creating problems.
The members of the group are glad for what the SHG has brought inside their
households. Pevathamma, 62 years old, said that her husband used to hit her but now
he has stopped it because he knows she can go and tell to the group or other women
can realize because of the bruises. Nevertheless, around 24% of them confirmed that
even being part of the group they are still bitted (“not so often-not so hard”) by their
husbands. They accepted that this situation is somehow their fault because they have
not gone and denounce it with the police or report it within the group.
Table No. 17: Summary of the main findings
Details
No SHG
SHG
Requester
Man
Woman
Source
Cooperative
SHG-bank linkage program
Community lender
Family members
Speed
1 month
1-2 weeks
1-2 days
1-2 days
Quantity
Rs. 2000 (32,3 USD) Rs. 4000 (65 USD)
Interest
2%/month
*Banks
9.5-15%/year
*Cooperatives
8.5-13%/year
LOANS
*Lenders
3-5%/month
Frequency
1-2 per year
2-3 per year
Repayment
95%
100%
Decision to
borrow
*Men
96%
12%
*Women
88%
*Jointly
4%
Women control 4%
20%
Activities
Agriculture
Households’ consumption
67
Livestock
Health
House repairs
Education
Festivals
Marriage celebration
INCOME
CONTROL
SAVINGS
DECISION
MAKING
Crop production
*Men
*Women
*Son
Livestock
*Men
*Women
Livestock/week
Women’s
expenses
Women
Average/week
Bank account
Production
Improvements
Areas
Low/no
participation
Common areas
SELFCONFIDENCE
MOBILITY
AWARENESS
VIOLENCE
Habit
Improvements
Areas
Restrictions
Freedom
Places
Extra company
Level
Areas
Government
programs
Knowledge
Domestic
80%
4%
16%
100%
80%
20%
Rs. 296 (4,8USD)
Household
Clothes
Jewelry
Gifts for relatives
24%
Rs. 38 (0,6USD)
12%
1 women
16%
Children’s education
72%
28%
Rs. 221 (3,6USD)
44%
Rs. 56 (0,9USD)
100%
3 women (jointly)
48%
*House repairing
*Settling marriages
*Livestock
acquisition/selling
Education of boys
Family plans
Sale of food grains
Storage of food grains
Fertilizer application
Crops’ varieties
Plant protection measures
Kitchen arrangements
Clothes and health of children
Family events
Consult husbands about all sorts of issues
44%
Communication skills
Quality of live
Social status
More respected than before
60%
24%
40%
76%
Visit neighbors
Temples
Public places (market, hospital, cities)
20%
80%
Gender
Gender and children
20%
36%
Government anti-poverty programs
Credit for small farmers
Capacitation in agriculture
60%
24%
68
FREE TIME
Workload
TRAINING
SHG
6-7 hours: farm
2-3 hours: cooking
1-2 hours: child care
1-2 hours: personal works
1-2 hours: household works (cleaning, washing, etc.)
1-2 hours: cattle
0.3-1 hour: water collection
6-7 hours: sleep
No free time
60% (books’ records)
68% (bank transactions)
Source: Author
1.4. Analysis of the findings
In India, 74% of the women in the SHGs have no schooling and 15% have some
primary level. In this view, the studied group has a tool that has not been realized yet by
the members and this is the education level they have. Without education NO impact can
be expected. Women have left behind their internal thoughts and fears to come together
but still they are not making use of their knowledge to bring new ideas for working as a
“real group” to overcome community difficulties and offer a better future for the present
and coming generations.
The lack of motivation and pro-activeness of the members can be one of the
reasons why even though being part of a group that is supposed to help to overcome
poverty with some economic tools, the members have not been able to do something
together for generating income. Furthermore, time has passed and the land/main assets
and loans of the households are still under men’s control, why? It could be that nobody
within the family, community and society looks for a real change. The ones that have the
power do not want to lose it and the ones that are unpowered do not do anything for
improving this reality in which women are affected the most. For getting a real revolution
what it is needed is more than the creation of a group; it needs a change in every member
of the family/society so the results can be tangible and fair for everyone.
On the other hand, the advances some households have because of women’s vision
in improving their livestock for producing more milk and get more income can’t be
devalued, however, it is important to keep in mind that almost all the rural poor women
in India are directing their efforts to this area, so not saturating the market has to be
considered for starting any income initiative. This is why the interaction among members
is useful because sharing ideas give the chance to learn more and clarify doubts.
69
Govindarajan and Mayandi in 2011 noted that the Self-Help Groups in the broader
concept play an active role in social and commercial transformation, income generation
and other development activities but the women of this sample said that it is really
difficult to have new ideas when the facilities are not good, no water, no electricity, no
roads, no transportation, well, a countless list of barriers they face, but, why do not they
work together for improving this reality? Why people in the same conditions have done
significant changes and these women have not? One of the reasons can be that appropriate
market support strategies has not been recognized yet. Women are afraid somehow that
the financial source can’t be enough for acquiring their goals and they do not feel able to
create marketing strategies for the possible products they can offer. There is no doubt:
changes are difficult to do, but they are not impossible. If the members do not start soon,
other 10 more years will pass without significant results.
o Loans
Table No. 18: Main differences of loans in the two villages
Details
No SHG
SHG
Requester of loans
Man
Woman
Source of loans
Cooperative,
SHG-bank linkage
community lender or
program
family members
Speed of loans
1-2 months
1-2 weeks
Quantity of loans
Rs. 2000 (32,3 USD)
Rs. 4000 (65 USD)
Interest of loans
2%/month
*Banks
9.5-15%/year
*Cooperatives
8.5-13%/year
*Community lenders 3-5%/month
Main use of loans
Agriculture
Households’ consumption
Livestock
Health
House repairs
Education
Festivals, and marriage celebration
Frequency of loans
1-2 per year
2-3 year
Repayment of loans
95%
100%
Source: Author
Leelavathi and Aradhana concluded that women were economically
empowered after joining Self-Help Groups (Leelavathi & Aradhana, 2006), but being
part of a group and ask for a loan will not give any “extra” power if women are not
able to decide how to spend that money according to their priorities and not based on
the others’ needs.
70
Figure No. 18: Women’s control over loans
96%
80%
100%
80%
60%
20%
40%
20%
0%
4%
Yes
No
Yes
No SHG
No
SHG
Source: Author
It is surprising to see that women being part of a group which divulges
empowerment are still not able to control their loans, only 20% of the members do it
what indicates that the change, if existing, is slow. On the other side, in the first village
only one woman does it (her husband will ask for it). She is the same person that takes
decisions regarding crop production because her husband migrated. For improving this
situation, the clue would be to work together within the households, men and women
to organize their expenses, needs and wishes. If men do not give the freedom to women
to control the loans, they will never learn how to be independent and if they do not
trust in their own capacities, then the level of complexity for acquiring empowerment
will be higher and instead of walking to the prosperity, the way will be deeper in
poverty and exclusion.
o Income controller
In both villages the percentage of women that control their income does not
differ significantly (No SHG: 24%; SHG: 28%), what confirms that the members of
the SHG have not done major improvements in this area. Despite they feel more
confident meeting people and sharing feelings, experiences, worries, and problems,
this has not been translated into actions where they can speak up with their husbands
explaining that they could also be able to manage the income, loans or resources by
themselves without any fear so men can trust them and realize a real change.
71
Detail
No SHG
Table No. 19: Income receiver in the households
Woman
Husband
Crops
Livestock
1
11
Handle myself: 1 Handle myself: 5
Son
Crops Livest Crops Livest
20
20
4
0
25
18
0
0
Give it to men: 0 Give it to men: 6
0
SHG
7
Handle myself: 0 Handle myself: 7
Give it to men: 0 Give it to men: 0
Source: Author
o Bank account
For the women of the sample the implication of having a bank account is related
with power since the ones that have it have improved their knowledge of banking, have
undertaken banking transactions, and dealt with bank officials. For the ones that do
not have it, the situation is totally different because for them the banks and those kind
of institutions are related with men.
If having a bank account have improved the confidence of the women and their
habits to save, it could also be a doubled-edged sword when they can’t be the “owners”
of it and their husbands or other family members are behind as controllers. It has been
seen that women are organized in their savings and accounts and men, most of the
time, take the money out for personal expenses not considering the efforts the women
are making for collecting that money showing that they, as a couple, do not work as
partners, what is really important for achieving communal goals and development.
o Savings
One of the remarkable results of the SHG is that through it, the members have
learned how to save regularly. However, it is still not clear if once they are out of the
group (if it happens) they will be able to keep this habit since they will not have
pressure anymore. Only the ones with internal discipline and possibilities will do it,
but considering the situation of the poor rural places, this is a difficult practice to keep.
In the first village, for example, even though women have not done the commitment
with themselves to deposit a fixed or variable amount during the month and reduce the
dependence for external loans, some of them have tried but somehow they need an
extra pressure and motivation to keep doing it and make this action a habit.
72
o Leisure time
Figure No. 19: Free time among women
92%
100%
100%
80%
60%
40%
20%
0%
8%
0
Yes
No
No SHG
SHG
Source: Author
In both villages women have heavier workloads than men and this situation is
taken as “normal”, the “rule”, the “custom” or they are not perceived as “unjust”. It
was interesting to see that when a woman wants to be different and fight for her rights,
she finds discrimination in the society more from females than males showing that the
aspects of tradition and culture are “natural” beliefs which exist beyond discourse or
argumentation.
Women from the SHG stated that there has been no change in the attitude of
men in helping with the household work. For women and men the roles of each one
are given so they, somehow, refuse to chance them; more when women are still not
able to influence their husbands and sons in sharing the daily household works. If a
variation is wanted, there is a need for sensitizing men in these aspects and women
have to stop giving extra value for the work men do outside home reducing the
importance of the things they do by themselves.
In general, all the women have no free time; only two in the first village
Jawaramma and Sharada, 70 and 65 years old, respectively have around 2 hours per
day for resting, eating or watching TV. The SHG members believe that being part of
the group takes time of their day but just when they have to go to the meetings or to
the bank. They stated their days are short because they take care of everybody at home
and when they have children, they are even busier. Their resting time, if there is a
chance, is when the kids are sleeping or playing. IFAD and other international
organizations have recognized that in poor households, women usually work longer
and harder than men with no leisure time.
73
Table No. 20: Women’s working time per day
No. Working hours No SHG
SHG
1
At home
8
10
2
In the field
6-8
5-6
3
In livestock
2-3
1-2
Source: Author
o Decision making
Holvat has said that women in SHGs participate actively in decision making
(Holvat, 2005), but even though now the women of the group have a stronger position
within the family and their husbands consider their opinions more than before for
sending their daughters to school and children's marriage, areas in which they used to
say any word; the final decisions traditionally are made by men, and this pattern is the
same in both villages with no significant changes. What could indicate that even
gaining some economic power, the social part is not touched with the same strength
because this area is difficult to modify due to some patriarchal rules or traditions that
are well rooted.
o Leadership
The actual leader of the group seems to work well with the other members
without oppressing them, being a good listener, and giving good advice when needed,
some reasons why she has been in that position since the creation of the group.
However, in order to move forward for a tangible change in improving women
conditions, more efforts are needed for discovering new leadership qualities, ideas and
projects to lead the group in a different direction connected with innovation, otherwise
the monotony will not allow the members to build a way out of poverty.
In the village without a SHG some women can be considered leaders, but
unfortunately they do not feel committed with each other and the perception that
women are better being at home is in their minds the whole time. At the end there are
a lot of ideas, dreams, and needs to tackle but no one have started with actions. In both
places, the characteristics of leadership that are really important for keeping the vision
of progress have not been developed.
o Mobility
Being part of the SHG has helped women to go out of their houses without
giving too much explanations to their husbands or family. They feel free for moving
74
inside the village (visiting neighbors and going to the temple) but if they have to go to
public spaces such as the market or hospital, they still feel shy or unsafe and they prefer
the company of someone, concluding that the panorama does not differ from one
village to another. If a woman does not consider she can move without restrictions,
then no changes will be done. Indeed, visiting friends and family is important for the
social life, but the freedom of mobility needs to have a relation with the public spaces
so women could be aware of other realities, other behaviors, and other opportunities.
This “going out” could break the image they have about the perfect woman because
they can realize females can also be good working outside home and interact with other
people. In this way, they could visit the local governmental organizations to know what
they can do in favor of the community and how they can contribute for their
development knowing what is going on in India and what projects, programs,
organizations, and so on can help them to go out of poverty and improve their lives.
This mobility factor is related with collective action that in both places is
minimal and almost inexistent. They have a lack of public services such as sanitation,
roads, electricity supply, education and health facilities and nothing is being done for
improving this reality. One of the reasons for not being active is the mobility restriction
women have. For them, being inside home “not caring” about the external world is
something that is part of the “rules”. They seem to have internalized their social status
as persons of less value than men what has implications in their well-being as well as
in the well-being of their female family members. They have accepted or “used to”,
under cultural norms, to be inside the house bearing children and sometimes, getting
violence by their husbands with no complains. Somehow there is an improvement in
the SHG members, but still there is the need to keep working in this issue.
o Skills/training
One of the remarkable skills gained being part of the SHG is keeping the books
of records, apart from that, the members and the non-members look the same. These
villages are missing trainings for improving women’s skills and let them contribute
with new ideas that can give some extra value to the community and why not, get in
the field of formal and professional education to participate in non-agricultural
activities breaking the dependency of agriculture. Trainings would have to be a priority
for every poor rural woman so they can learn and socialize with others being able to
manage their own life and community projects.
75
1.5. General observations
Ramachandran and Balakrishnan identified that the SHGs have the power to
create a socio economic revolution in the rural areas of India (Ramachandran &
Balakrishnan, 2008). Despite of the visible changes in women character and attitude,
improving their household's quality of live and sending their children to school are still
at the need level and have not been achieved or realized. Existing patterns cannot be
expected to change by simply implementing a SHG. It seems that thanks to time and
international influence, men and families have accepted women's participation within the
households, more than by national initiatives as the creation of SHGs.
Even though in India single-sex groups targeting women’s needs are in the boom,
it was seen that men, who have been left out of the scope, also want to be part of this
“change and grow”. They can’t be pointed as the bad of the story in a society that has
taught/shaped them to get more benefits than women. That is why it would be important
to include them in the process of poverty alleviation to have better results and decrease
in real way the differences among them and women. Although the economic indicators
can give an idea of how is the situation in each village, what matters is to see what is
behind these numbers and if change is being done inside doors of each household with
the collaboration of its members and inside each woman.
II. QUALITATIVE ANALYSIS
During this study, the researcher spent some time in both villages verifying and
checking in which conditions the rural people live. Everywhere in the two studied places
children were around really friendly and curious about the new visitor of the village. Even
though the researcher did not speak their language, gestures and signals were useful for
understanding what they wanted, and most of the time, it was a picture all together.
The infrastructure of the samples looks the same. The roads are not paved and for
getting to these villages there are no buses available. The closest bus station is 30 minutes
away by car from the village with a SHG and 25 minutes from the village without a SHG. For
getting to these communities people have to walk, get a motorcycle or an auto (moto-taxi).
The electricity cuts are normal during the day with at least 5 hours with no light (average).
76
This is one of the reasons for which solar chargers are common among the households in case
of emergencies. The villages have two or three wells from where the women go and collect
water. In some houses they keep it in a reservoir or in big buckets located in the backyard. In
2010 the government installed a water supply in a strategic location in each village that is
supposed to be used as a drinkable water. However, the habitants use it for washing the
dishes/clothes, what pollutes and wastes this resource. Most of the houses have one floor with
mainly two-three rooms where the family members sleep sharing the space. The toilets have
latrines and the kitchens are pretty big where women cook sitting on the floor. There is a
special place for praying where the images of the gods are placed with candles, incenses, roses
and fruits (mainly coconuts). There is not internet connection and almost every adult person
has a basic cellphone.
These villages are surrounded by nature, however, in the middle of the street, in the
corners and in the backyards of the houses is common to find garbage (organic and inorganic).
Somehow the environment is clean because there is not pollution from cars and there are not
factories nearby but commoners are used to stack the garbage in one place and burn it. Every
agriculture activity is conventional; for the farmers what is important is to produce as much
as possible not paying attention to the quality. They prepare compost with the dung of the
cows and feed them mainly with the paddy straw.
2.1. Women’s stories
2.1.1. Bommanayakanahalli village
Until the day of the interview, any SHG was created in this village despite
the fact that the place has people living under the poverty line or in risk to fall under
it. The majority of women agreed that there is a need of this kind of association in
the village so the actual situation can improve. However, none of them wanted to
take the leadership and start with this project.
Anasuya, a 44 years old lady, the “representative” of the village said: “No
woman wants to be the head of any group because we have to be at home. Our husbands
do not want us to be public characters. Of course we need a change to get enough resources
and improve our lives, but we are complicated somehow and this change will take time”.
Her husband is the head of the household. She “does not work” but she is in charge
of the whole house. When she needs something she has to ask for money from her
husband or son. Her daughter is studying at the University in Bangalore, 6 hours
77
away from the village. “I want to give to my children all that I could not have. Life has been
difficult because I did not study. If I could go back in time, the only thing I would do is study. For
that, I want my daughter to be well prepared so when she gets married she will be at the same level
with her husband and she will not suffer. My husband is a good person but sometimes I feel like I
do not exist because he does not take me into account for some decisions related with the field. In
the only area I can take decisions entirely by myself is in what to cook every day”,
she said.
According to her, there is still a lot to do in the field of gender equality and
women empowerment. “I consider myself as an active person and if I do not agree with
something I will tell you. That is why somehow I have a place in this house. But in this
village, I have seen negative situations were women remain silent and calm in front of any
kind of abuse from their husbands and family because they have no option. Their head is
down because they do not have any place to go or any income to survive. This is the main
reason why we as women do not have power because we are the ones that remain quiet
following the rules that men created… or women (I am not sure)… If we as women would
be more active, our situation would be different, but if we do not look for change, then
nothing will happen”. Her husband is the owner of 1 ha of land where they have 20
coconuts trees and sugar cane plantation. When the harvest time arrives, he hires
people to work in the field (no one in the family does agricultural works). They do
not have any livestock and all the income of the family comes from the husband
and son, a politician and a doctor, respectively.
During this study, the researcher stayed in Anasuya’s home for
approximately two weeks. As the investigator, being inside this magic and at the
same time turbulent reality, I wanted to go and experience everything that was new.
One day one of the neighbors, a 10 years old girl was preparing the donkey for
collecting water. It was a shame that I could not speak her language but I tried to
explain that I wanted to go as well; fortunately she understood but she told me no.
She was sending me back home. Later her mom came and she said why I could not
go. The translator told that since I was new in the village I needed a company of a
man for going to get water because if I went alone everyone would start gossiping
who I was, where I came from, why I was there, and so on, so I did not go.
I wanted to get as much as information as possible, record videos, play with
children and take pictures, but I was not as free as I thought I was going to be. One
day I told Anasuya I will go and take pictures. I was having a walk in the village
78
and all the people were asking who I was and where I was from. I did not feel in
danger in any moment. After around 15 minutes Anasuya went to look for me and
she told me “it is time to go back home” (sign language). I tried to explain that I
needed more time but she did not allow me. Later on I discovered that it was because
I am a woman, and ladies have to be at home. In the firsts days everything was a
mix of feelings and I did not understand many things, but then, I tried to see them
in the way they do, and finally, I think I did it! It does not mean that I agreed with
everything but at least I stopped questioning why this and why that and better see
what is beyond their thoughts and attitudes.
In this village getting a credit is a “man’s responsibility” but 6 women already
have the habit of saving and 3 of them have their own bank account. Sandhia, a 35
years old lady said: “Two years back I told my husband that I wanted to open a bank
account and he supported me. I can’t deny that at the beginning it was difficult because I
needed to fill lots of papers. I was lucky because I went to School so I could read and sign,
but the situation would have been different if I had have no education. Nobody is there to
help and they treat you really bad”. She has her own money from selling milk and
butter, 8lt and 2kg as an average per week, respectively. She tries to expend what
she earns just in necessary things (food and health). Her main objective is to save
enough money for the marriage of her daughter. “I try to save some money every week
and when I want to take some of it out of the bank, I will talk to my husband first to see his
opinion. Sometimes, he does not agree and when it is not urgent, I do not take it, but in
other occasions he is the one that needs some money so I have to give it to him. I cannot
say no, he is the head of the family”.
When the question about free time was done, there was always a smile in
every women’s face. “Free time? If we are not cleaning, we are cooking or in the field,
or with the animals or with our children, but we are never free”, said Sadhana, a woman
of 43 years old. “Our lives are full of things to do but we are happy, somehow, at least
we are with our animals and field that feed us. We cannot complain too much, that is life”.
2.1.2. A Chalenahalli village
In 2003, a member of the Indian government visited this village for
explaining the objective of empowering women of rural areas through Self-Help
Groups. Komala, the leader of the group was 30 years old when she heard about
this initiative for the first time. She said: “I was not sure if being the leader of the group
79
was going to bring me peace or trouble. You know, in a small place everything can happen
and gossips are everywhere but someone had to do something for improving our situation,
so I decided to give the first step”. For her, the support of her husband and family trust
have been the key for the success of this initiative. Since the beginning her husband
did not object, and now the support is even greater because he has realized the
importance of the group.
“It was our opportunity for leaving poverty behind”, she said. “The government
officer visited some houses asking for information regarding our economic situation. I was
really interested and talkative so I think that is why she chose me to talk with the other
women in the village. After that, she started to visit their neighbors to tell them about
this project. She did some kind of survey to each household to see similarities and
differences among them. “…It was difficult! It was hard to go house by house explaining
something we could do but it was not done yet! I tried to pursue women to be part of this
group explaining the benefits it would have, however, most of the families thought I was
offering some kind of subsidy or things like that… on the other hand, some women were
afraid for the reaction of their husbands. Then, I decided to do a communal meeting in the
village where men and women were welcome to see the new project”.
Komala focused in the most important issues for the family writing all
details in a paper provided by the governmental visitor. This preliminary survey
that helped to understand the needs of each family took around 3-4 months. Then,
she talked to the officer explaining the similar problems they had. After 8 months
more or less, the group was formed. It started with 15 members and since then, they
have been together. The main benefit for the women was getting loans and Komala
was sure they would not have any problem in this area: “I know my people and I know
that we can stop eating if we have a doubt to pay”, she said.
According to her, during these 10 years the governmental support has not
been enough. “Sometimes, the government forgets us and they do not come to visit to see
if we are doing well or not. I have tried to go beyond the financial part and start with some
training for improving our knowledge but the participation of the members is not active.
Some of them have no education are they behave just as listeners and followers of the
decisions taken in the meetings with no contribution at all, and that is something that
bothers me. I believe we have to do something for moving forward but I feel I have lost
some of the energy I had at the beginning”, she stated.
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For the correct development and functioning of this Self-Help Group there
are some basic rules that every member needs to follow. Each of them has been
settled by the group. Since the beginning they wrote them down and they are very
basic. Keeping the same rules for everyone has helped to maintain a democratic
atmosphere and they refer about:
o Coming regularly to the meetings
o Be on time
o Saving regularly
o Respect one another
o Penalties for delaying the payments
According to these rules the group leadership is based on rotation, but
actually, they do not do it in this way. The members of the group have not elected
another leader apart from Komala because they are glad with her functions and no
one else has manifested her desire for being in that position. In this SHG there are
no chairpersons, secretary or treasurer but there is a book writer who keeps the
records of savings who was trained by the government officer. After a term
(normally two years) a new book writer will be selected. On the other hand, every
decision to be taken by the group has to be by consensus rather than voting.
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Table No. 21: Main information of the SHG
Detail
A Chalenahalli Village
Name of the group
Lakshmidevi Self Help Group
Year of creation
2005
Leader of the group
Komala Chandre Gowda
Age:
42
Education Level:
University (not finished)
Occupation:
Farmer
Number of children
1 (daughter)
Marital status
Married
Number of members
15
Average age
41
Average land size
2,58 acres
Main function
Provide loans
Loan repayment period
3 to 12 months
Number of meetings
2/month
Penalties
*Non-attendance (prior
No fine
information)
*Not attending (no prior
Rs. 6 (0,10 USD)
information)
*Not attending without
Rs. 4 (0,6 USD)
genuine reason
*Late attendance
Rs. 3 (0,5 USD)
*Non-payment of
loan Rs. 12 (0,2 USD)
installment
Organization of the group
Leader
Duration
2 years
Availability of money
2 lacks (3.225 USD)
Loan per member
Rs. 30000 (484 USD)
Interest rate
2 % per month
Use of the loan
Consumption needs
Agricultural activity
Livestock
Marriages
House building
Repayment rate
100%
Lender of the group
Kaveri Grameena Bank
*Other SHGs
200
*Average lending/group Rs. 99000 (1600 USD)
Savings per week
Rs. 20 (0.32 USD cents)
*Total saved amount
Rs. 5,00,000 (8064,5 USD)
Working capital
Savings
Interest (savings, loans)
Fines
Grant/loan (sponsoring bank)
Indian Government Control Each 6 months
Other benefits
No
Source: Author
 Meetings
The members are committed to meet regularly every week, but they do it
each fifteen days (twice a month). They decide the place, day and time. Meetings
are held in each member house according to a rotation system following their
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names order. The meetings normally start with a “pooja”/prayer and/or song
and savings and loans are the main topics. They are led by the leader but all the
members can speak freely and comment about their doubts and expectations.
Before starting, attendance is taken. Then, the Minutes of the previous meeting
is read and members may ratify it or suggest corrections (Tate, 2000, p. 56). If
the member cannot go to the bank for the weekly deposit, they can give the
money to the bookkeeper or to the leader who will make the deposit (nearest
bank: 30 min by bus). Every time a transaction is done (saving, loan, loan
repayment, etc.) it is recorded in the individual kardex by the bookkeeper.
Members’ attendance in meetings is 90%, however, extra works during peaks in
the agriculture sector influence it.
 Savings
In 2005 the group opened a bank account with its name (Lakshmidevi
SHG) and the main signatories were Komala and 2 other members (the first book
keeper and the oldest member, Kumari and Parvathamma, respectively). Each
women agreed and committed to save Rs. 20 (32 USD cents) per week. At the
beginning it was possible by either doing an extra activity like selling milk or
cutting down the expenses of the household. Members said that it was
complicated, but now, little by little they have a financial discipline and they
know they have to save. Here, trust, discipline and responsibility are important.
 Loans
For requesting a loan the members follow their own lending rules. First,
they have to approach to the leader and ask for the money with a written request
(existing format). Then, the member has to wait for the next meeting where the
whole group will take a common decision, and then, get the money from the
bank. This procedure would take nearly two weeks (if everything goes
smoothly). What differs from the moneylender who might have the money ready
in one or two days. If the loan is not paid on time, the member will pay a fine
(Rs. 12-0,2 USD) or the group will take her collateral (usually cattle).
The group has available 2 lacks for loans (offered by the bank) so each
member can get up to Rs. 30000 (483 USD) at 2% interest per month. The rate
of repayment within this SHG is 100% and until today, they have not had any
83
member who did not pay. The leader said that this is one of the best
characteristics of the group, that even being poor the payment capacity is high.
When a member wants a second loan, regular and timely repayment of
the first one is considered as a very important criteria. The member has to submit
again a written request explaining the reason of the loan. It will be discussed
during the next weekly meeting and final decision will be taken. Depending on
the amount and the purpose of it, the group will fix the number of installments
for the repayment of it. It is important to keep in mind that the loan repayment
by the SHG involves two stages: the first one is by the members to the SHG and
the second is by the SHG to the bank.
2.1.2.1. Typical life stories within the group
During this research many life stories were told. There was a
case of a lady of 35 years old in which her husband responded to
“almost” every questions. She kept quiet during the whole interview.
Researcher and translators tried to get her answers talking directly to
her, but her reaction was to keep her eyes in her husband waiting for
him to give the answers. The researcher wanted to stop the talking to
the man and have it with the woman but he said: “Sorry, I have to answer
because she does not know anything about these details. Everything related to
her, you can ask me”.
This was one typical model where the women remains quiet in
front of other people that are not part of the family. The name of the
lady of this story is Yanhadha with no education and fully in charge of
the house, livestock, and some activities in the field such as
transplanting, weeding and harvesting. They cultivate rice and ragi
(mainly for self-consumption) and sugar cane and coconut for selling
in 2 ha of land. This family has 3 children and the oldest one, 6 years
old-boy, is already going to school. In their house there are 7 members
including the husband’s father and his younger brother. At that moment
of the interview the family did not have any secure income because the
husband was without a job. He has some temporary works in
84
construction or in the field in which he can earn around Rs. 200-300 per
task (3,2-5 USD). He said that being part of the SHG is favorable,
“…when we need money, we ask for it and then we get it… but the amount is
never enough. We always need more and more”.
Their second son is around 3 years old and he has some kind of
mental retardation, “We took him to the hospital and the doctor sent some
vitamins. He did not do any kind of extra examination of his brain or body.
We were supposed to go back 3 months later but we had no money. My only
hope is that my son would get better soon, I am always praying to GOD for
help”, he said. Two months ago they had a new baby and she has some
problems in her eyes. “I want to have more children. At the end my sons will
take care of me when I get old. Economic situation is not good now but when
my sons grow they will find a work and we will be better”, he affirmed.
Another case was a family of 11 members (8 children). Here, as
in the others, the husband is the only one working. Their income is
around Rs. 14000/month (226 USD) from selling rice, sugarcane,
coconuts, and from extra works in the field. The husband is in charge
of getting all the incomes excluding the selling of milk and butter.
Before being a member, Savitha had one cow, now, she has 2
cows, 2 sheep and 1 goat. These animals live outside home tied with a
rope, there is no stall. She sells around 2-3 litters of milk/day at Rs.
21/each (0,33 USD cents) and around 2-3 kg of butter/week at Rs.
100/each (1,60 USD). Some milk is for household consumption and for
preparing cheese, when possible. 3 of her oldest children (2 girls- 1 boy)
are attending to School. One year ago another daughter was attending
too but her performance was not good so now she helps with the cattle.
Generally speaking, Savitha seems happy for being part of the
SHG. She said this is an “easy” way to get some money from the banks
without being excluded for being a woman, a poor woman. According
to her, this space has helped her to be more social and get more value
from her husband. She told that before he used to take decisions by
himself but now they talk more about family issues. When they want to
85
ask for a loan they will sit together and plan what to do with the money
and how to pay it back, situation that was not like this before. Her
biggest desire is to have more women in the group so they can enjoy
the same positive changes she has. She said there are still lots to do in
her village, in a place where women abuse is still normal because
gender inequality is consider a “rule”. Her future plans are to be the
leader of the group and incorporate some training programs about
elaboration of butter and cheese, “I am an expert on this”, she said.
She has some projects in mind about dairy production: milk,
butter, ghee, cheese and curd are some of the products that can be done
becoming an important source of food and income when it is marketed.
Savitha’s idea is to train the members by herself on how to prepare those
products. First, she will see the ability of the women and their response
to it because “not all the women are engaged with the idea of a better
future”, she said, but there are members that like the challenges. Her
main objective is to ensure fair incomes and keep them for investing in
business. She seems to be a good leader, and the only hope is that she
will do what she has in mind getting the support of the other members.
The women of the group agreed that there has been some
positive changes after joining the group. At the beginning many of them
did not know how to sign their names and now they are able to do it.
They consider that the saving activity should continue forever because
through it they have gotten some knowledge about banking systems and
they could meet each one frequently, situation that has improved their
self-confidence and organize themselves better.
2.1.2.2. Things to improve
Although SHGs give the opportunity to participate in several
training camps, this group does not do it and their focus is on savings
and loans. According to Komala, there is not desire from the members
to learn, for example, how to read and write, so she has not done any
improvement in this field, “For getting a training I have to approach to the
86
government or to an NGO and start with the process. This will take time and
money and if nobody is interested, there is no motivation for me to do it”, she
said. This shows that the goal to promote and enable women to take
responsibilities of change in community development is not fully
achieved and it is not reflected in their daily life (Kitchin, 2000, p. 67).
It seems that the members are satisfied enough if they can get
the amount of money they need on time. Until now, they have not gotten
any consciousness about the importance of education and training,
situation that is linked to the use of the loans. How can it be possible
that a person without education and without going out of the four walls
can be able to start with some ideas about micro-enterprises? It is not
for saying that they are not able, but not all of them have that leadership
and entrepreneurship spirit for starting something from cero (Mansuri
& Rao, 2012).
Even though NGOs are working in the whole India for
promoting and improving the development of these groups, this SHG is
a sample that not all of the members of the movement are considered
for trainings and skills development. If the situation continues like this,
the objective of empowering women in the social sphere will not be
reached giving a free pass to the economic side to fulfill most of the
“money” needs of the households but not creating a real revolution
where the human being is placed first than the capital.
At the end, if the members do not try to improve the things by
themselves realizing the importance of the opportunities they are losing,
no one from the government, NGOs or other institutions can impose
their way of thinking on them. The only concern is that if this reality is
the same in other villages, districts or states, then the movement
considered as a tool for reducing poverty will go directly to the
“oblivion files”, place that most of the time is ignored by politicians,
policy
makers
and
researchers
and
with
time,
another
technique/mechanism/approach will appear assuring that poverty will
be eradicated but at the end, it will just be a false promise again.
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CHAPTER V
CONCLUSIONS
After concluding this research, some gaps between intentions and results from the
movement were found, underlining that being part of a SHG does not automatically lead to greater
economic autonomy for poor rural women. It cannot be assumed in a simple way that women will
take control over loans and additional incomes just because they belong to a group. To achieve
noticeable changes in their position within the household and the community; education, training
and awareness-building programs are some of the measures that are missing in the studied group
and have to be taken into consideration.
This study attempted to determine if rural women of a SHG are more empowered compared
to non-members and the answer of this research question is yes. Indeed, the SHG approach is
helping its members but some similarities and differences were found between the two samples.
In the saving area, for instance, all the women from the SHG have learned the importance of
keeping savings for some unexpected situations, what have changed, somehow, their short term
view of life. While in the first village 24% of the interviewed women try to save a little amount
(average Rs. 38-0,6 USD) per week, 44% of the members of the SHG save an average of Rs. 56
(0,9 USD) per week apart from the weekly amount they deposit in the group (Rs. 20). Saving
regularly and keeping this habit is a step in the way of economic empowerment giving women
some freedom to use their money for their needs.
Another significant difference was found in the number of women holding an account in
the banks. 88% of the non-members do not have an account mainly because they are reluctant to
visit the bank for their low level of literacy; while in the SHG all the members have it. In one side,
having an account has helped women to increase their self-confidence improving their knowledge
of banking, transactions, and dealing with the bank officials, but in the other side, they are still not
able to use this tool in an individual way without the control or supervision of the husband since
84% do not manage their savings as they wish because before any transaction, the husbands/sons’
opinions will be consulted, and this reality is the same in the two villages.
One of the main benefits that the SHG has compared to the other village is that this group
that has been neglected by the formal financial agencies in the past, now is linked with the banking
services allowing the members to have access to loans, putting money in women’s hands for
combating poverty and changing preconceived concepts within the patriarchal society. In the first
88
village, on the contrary, the men will ask for money mainly to community lenders. Even though
the sources of the loans are different, in both places the money is used mainly for agriculture and
household consumption. In the SHG, 12% of the women take the decision of taking a loan and
what to do with it completely or mainly by themselves, what shows some kind of improvement
comparing with the 100% of women with no SHG that can’t get any loan by themselves. Despite
this positive change, inside the SHG 80% of the women lose control over their loans what creates
that this “help” has no significant transformation for their lives due to asking for a loan does not
give any “extra” power if they can’t decide how to spend it according to their priorities. Even being
part of the SHG, still 12% of the members have not cut the dependence with moneylenders what
question how effective this movement can be for linking the poor women with access to credits.
In both villages the men receive all the income from marketing the crops, what shows that
the women of the SHG are still dependent on them for getting money and cover certain needs.
Nevertheless, some changes are being done in the two places. In the SHG, 7 members sell their
livestock products and keep the earnings (Rs. 221-3,6 USD). If well these figures indicate some
kind of improvement that could empower women economically, the change is not considerable
compared with the village with no SHG where 5 women also keep their earnings (average Rs. 2964,7 USD). In this way, women from both places are almost in the same level managing their
earnings, what was not expected because it could be an indicator that the SHG has not done any
improvement in teaching the members how to control and administrate their incomes.
On the other hand, for the women of the SHG time has passed and the land/main assets of
the household are still under men’s control, showing that the creation of this group has not brought
changes in this area up to now. If women’s lack of control over family assets is not challenged,
then the formation of the SHG may fail to its promise about empowerment.
This study did not inquire about the changes in time of the income of the households.
However, it was surprising that the village without a SHG has a higher income than the one with
a SHG with Rs. 140000 (2258 USD-188,2/month) and Rs. 112900 (1821 USD-151,7/month),
respectively. Even if both of them share almost the same characteristics of infrastructure, society,
environment, and economy; members are actually on average less wealthy than the non-members.
For linking this fact with being or not being a member of the SHG, further research is needed.
Even though the level of literacy is higher among the members of the SHG with 68%
compared with the non-members with 36%, this advantage has not been considered as a tool for
89
achieving greater level of empowerment in the areas related with decision making and leadership.
The level of education has not been improved because the group is focused in the concept of
savings and loans without a real and strong commitment to identify what the women of the group
lack realizing that the mere availability of funds is not likely to eradicate rural poverty
(Venkateshmurthy & Dinesh 2009, p. 267). If corrections are not done on time or the existing
policies/programs interventions are not adequate, then no changes can be expected within this area.
In the field of decision making, women from the SHG seemed to be more empowered than
the non-members. 48% of them have a voice in the areas of settling marriages, purchase/sale of
assets, family savings, children’s education, and livestock acquisition/selling, while 16% of the
non-members feel free to take decisions just regarding the education of their children (mainly
girls). However, in both places, there is no difference in the areas related with crop production and
agriculture that are seldom touched by women and the final decisions are still made by husbands.
If indeed there is an improvement in the decision making inside the household, this pattern has to
spread in the other activities too where women can contribute with their opinion, knowledge and
experience.
A significant difference was found among the members of the SHG in the level of their
self-confidence since they feel more open to meet new people, share their feelings, experiences
and worries than the group of women without a SHG. 44% of them believe that their
communication skills have improved, as well as their quality of live, and social status. They have
learned to sign, to speak to visitors and to attend to meetings developing their social interaction
sphere better than the non-members. A high self-esteem with unbreakable roots is needed for
playing a proactive role in changing the structures and processes of decision making, which have
to be more inclusive, fair, democratic and participatory challenging the norms of a patriarchal and
male-dominated society like India. Nonetheless, during the interview there were some women
really shy to speak and to have direct eye contact with the researcher, what indicates that the
remaining 36% of the members need special attention for improving in this area.
Another favorable contribution of the SHG that was not found in the other village is that
76% of the women feel freer to leave their houses without permission or without giving too much
explanations to their families compared to the almost 60% of the non-members that rarely leave
their homes. Even though this freedom is mostly for moving inside the village, great changes start
with small details. The next step would be to apply this freedom also for going to public spaces
90
without any company so little by little women will be aware that there is “life outside home” and
they will involve in social activities improving their way of feeling with themselves.
Despite the progress found in some areas, in this sample, the SHG approach has not succeed
in developing leadership, trainings, awareness, and collective action among the members as motors
of change in the community. In both villages, for example, there are problems with alcoholism,
water and sanitation, and electricity supply, and nothing is being done for improving this reality,
showing that collective action for both places is inexistent. There are not good leaders for taking
the first step and women are not aware of their rights. Here, members and the non-members are at
the same level showing that the existing patterns cannot be expected to change by simply
implementing a SHG.
Minimal difference was found in the level of awareness and political participation among
the members and non-members. Around 64% of the members still lack a proper knowledge about
the various government schemes for employment and income generation. The awareness level
about the local planning and legal rights is an area which is almost neglected. Regarding
membership in the political process, all the women of the sample are not involved on it showing
that the participation of the members and non-members in the local planning, decision making and
implementation of development programs in the area is nil. This panorama confirms that a SHG
can be an engine of growth and women empowerment ONLY when proper training is given.
Empowerment needs to go together with information, and this is something the members
of the group are missing and without it, no development can take form. This SHG succeed in
organizing the poor women to get together but it is not creating opportunities for them to
participate into income earning activities. If the members do not start creating income, they could
not go out of poverty. To achieve this, a spirit of self and mutual help is needed if the great promises
of poverty reduction and empowerment want to become true. Unfortunately, until now the studied
SHG is not taking efforts to help the members to identify suitable income-generating activities
based on their skills and aptitudes and this should be the next step to follow trying to focus on
several activities, particularly dairy, handicrafts and pickle/sweets making which have enormous
possibilities of growth in the zone using the available raw material, resources, and market channels.
In the domestic violence area some improvements can be seen in favour of the members of
the SHG, but not because the group is doing something, rather because the men have realized the
value women have or they are afraid their wives can go and tell everything to the other members.
91
Still, around 24% of the members suffer from violence from their husbands, while the figure
increases to 64% among the non-members. This can give a small signal that per se being part of a
group can change the perception men have about women, but the results would be even better if
some campaigns or lectures are organized to stop this gender abuse and liberate women from this
“fear” they have since they are children. Women of both villages do not realize yet that they have
to be the protagonists of change through their individual and collective efforts to break the culture
of silence and leave behind the idea of passiveness.
One of the disadvantages of the SHG is that it does not take into account the poorest of the
poor of the community. It was seen that the very poor women of the village were not part of the
group because their economic capacity was bad for being able to have a fixed amount per week as
savings; what shows that women who are already relatively more empowered are more likely to
join this kind of initiatives. This is a clear sign that the movement that proclaims the formation of
groups to fight against exclusion, poverty and inequalities, is leaving out the people that really
need help (Govindarajan & Mayandi, 2011, p. 76). Nevertheless, some corrections could be done
to give a voice for those ones that until now have been untouched by the wind of change. To reduce
these barriers flexibility would be needed to allow varying deposits and frequency, perhaps with
some rules and norms; in this aspect, the poorer the women the more careful the guidance needs
to be (Kay, 2002, p. 80).
The above finding is a reality happening in a village of Karnataka state which is widely
acknowledged as the region where the movement of the SHGs started. The question that rises here
is that if the situation of this group is not as positive as some researchers show, then how the other
groups from the poorest regions of the country are? If the Self-Help Groups are expected to make
a significant contribution to poverty alleviation and empower the members in economic, social
and political spheres, why is it not happening? One of the reasons can be that there is a great
distance between the goals enunciated in the policies, plans, and programs where the discourse
that started from more than 20 years back has not had any amendments in favour of the poor and
in the actions that are being taken.
Since 2013, the Lakshmidevi SHG has not received any visit from the bank/government
staff and the surprising finding was that the members of the group have not approached to them to
remind their existence. If the government of India really wants to build a process of change, then
monthly visits are required to refresh to the group’s members their main aims. The idea would be
to set strong bases so women can keep working on them, if not, the SHG will be just a group of
92
women with no clear vision of what to do and where to go as they are today. What is important to
clarify is that if women of the group do not search for help, then nobody will change something
they do not want to.
In the village with the SHG, it was seen that men are more likely to support approaches of
women's empowerment if they are also benefitted. The promotors of the movement need to realize
that without men’s involvement, women are unlikely to gain new rights. People are aware that
poverty creates similar problem for all without paying attention to the caste, gender, community
or religion, so why not including men in this process of change? Empowerment could have a real
meaning and exist at every level of the society to develop a two-way relationship: from
empowerment to development and vice-versa ONLY if men and women joint efforts. The
objective now would be to change this “win/lose” scenario where women’s gains are seen as men’s
losses to the “win/win” margin where the benefits are for women, men, families and communities,
creating significant inter-generational benefits (The World Micro Credit Summit, 1997, p. 145).
This SHG is a sample that the promoters of this movement have not paid full attention to
the quality of the groups that have been created and this could be one of the reasons why the
development of the SHGs is not homogeneous in the entire country. To avoid this issue, the policy
makers and government staff need to clarify the vision of the movement and start working for it
in a practical way reducing the gap between the purpose of the project and its application where a
time line would be useful for observing the development of every stage of the group and intervene
when needed knowing exactly the requirements of each group recognizing that the socio economic
conditions of the poor are divergent and no uniform solution could be applied.
Finally, Lakshmidevi SHG has achieved some improvements in the member’s attitudes and
way of thinking mainly about education and self-confidence what shows that this group is
benefiting rural women but not in the same level to all of them. According to the United Nations
women empowerment is “the process by which women take control and ownership of their lives through
expansion of their choices”, and in this case, the women of the SHG are in this process.
Notwithstanding, still the access to information and resources is lacking what does not allow to
have different options for making choices and get a positive thinking to create changes. To obtain
a real empowerment there is the need to have the family support, capacity building, land rights,
access to ICT tools, management training, among others, otherwise no empowerment will be
achieved. Decades of passivity cannot be solved in just some years, it needs time, cooperation and
determination. The unmistakable achievements in areas like education and health show that
93
progress is possible, but the continued disparities in others such as income control and decisionmaking within the household indicate that remains a lot to do.
From this investigation new questions may arise for what future research could be in charge
of going further and get more evidence about the benefits of this movement in India and the
changes poor rural women are experiencing for being empowered.
94
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ANNEXES
A. Women empowerment in Karnataka, India (Questionnaire)
I.
GENERAL INFORMATION
Date: ___________
Age: ___________
State: ___________
II.
Name: __________________
Marital status: ____________
District: ___________
Village: _____________
ECONOMIC SITUATION
1. Educational level: None ___ School ____ Secondary ___ University ___
2. Family size: ___
No. of children _____
No. of adults _____
3. Number of family members engaged in farming: ____
4. Sources of income:
Own business: ___
Agriculture___ Off farm activities: ___
Others: ___
5. What is your annual income? Rs. _______
III.
FARMING INFORMATION
6. Which kind of crops do you produce? Rice: ___ Ragi ___Vegetables ___
Sugar cane ____ Fruits _____
Others/please specify: ______________
7. Are the crops produced for commercial purposes ___ or self-consumption __
8. What quantity do you produce? _____
9. What quantity do you sell? _____
10. How do you market your crops?
a) Direct ____
b) Through middle men ____
c) Through agencies ____
11. Who receives the payment? Woman ____ Husband ____ Son ___ Others: ___
If it is you, what do you do with it?
a. I will handle by myself ___
b. I will give it to men in the family ___
12. Farm size ______ acres
13. Who is the owner of:
Me
Husband
Son
Father In law
Daughter
Other
Land
Livestock
Housing
Farm equipment
Vehicle/moto
102
IV.
WOMEN EMPOWERMENT
14. Who is the family head?
Husband ___
Wife _____
Other _____
15. Who takes decisions regarding the farm? Woman ___ Man ___ Son ___ Others
16. Since when are you a farmer? _______
17. Are you a member of any Cooperative or Farmer’s Union in the area? Yes_No_
If yes, which one? _________ Main purpose ____________________
18. Do you have any debts?
Yes ___ quantity (Rs.______)
No __
19. Have you been part of women empowerments projects? Yes __ No __
If yes, specify: _________
20. What are your main activities in the farm?
a)
b)
c)
d)
Vegetables gardening ____
Animal husbandry _____
Processing activities _____
Others _______
21. Do you give any added value to your products? Yes ___ No ___
If yes, in which form? ____________________________
22. Is the salary of the women the same as the men?
How much is it per month? __________
Yes __ No __
23. Do you have access to credit? Yes ___ No ___
If not, why? ______________
24. Do you have a bank account? Yes ___
No ___
25. Do you have your own money on which you can decide what to spend on?
Yes ___ No ___
26. Do you have your own savings? Yes ___
No ___
27. Do you keep record of your income and expenses? Yes ___ No ___
V.
SELF-HELP GROUPS
28. Are you a member of a self-help group? Yes ___ (since when: _______)
No ___
29. What are the benefits of joining this group?
a)
b)
c)
d)
Loans ___ quantity (Rs.______) interest per year (____%)
Skills development ___
Women empowerment ___
Others _______________
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30. What are the disadvantages of joining this group?
a)
b)
c)
d)
Exclusion of the poorest ___
Patriarchal system ___
No-transparent management ___
Others ___
31. Being part of a SHG has improved your life?
Yes ____
No ____
32. Would you recommend to other women to be part of these groups? Yes_ No_
33. Your family members agree that you are part of this group? Yes ___
No ____
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B. Semi-structured questions
ECONOMY
For what do you spend your money? Do you buy things for yourself?
Do you need the permission of your husband?
LOANS
Are the loans used by your own?
Do you get loans from money lenders? Why?
For what do you use the loans?
Have you taken loans for income generation activities?
DECISIONS
Do you take decisions alone?
Can you decide on buying land, cattle, moto, repair the house?
Can you decide how many children do you want to have?
PERSONAL
Would you like to start studying?
Would you change something about your life?
Have you suffered some kind of violence from your husband?
Do you get some help in household work?
Does your family recognize the value of your household work?
Do you feel shy speaking in front of others?
What do you do for fun/rest?
MOBILITY
Do you go to the market/hospital/friends/family alone?
Can you work outside home? Have you done it? Why?
AWARENESS/PARTICIPATION
Do you know the names of the policitians in the country/village?
What do you know about SHGs?
Have you led any protest against unfair situation in the village/family? (divorce, abandonment)
Do you claim when you are not happy/satisfied with something? (prices, quality, treatment)?
Have you been elected president/leader of any group/association?
Are you a member of any other social/ religious organization/group? Leadership position?
Are you aware about:
1. A daughter, widow and mother can inherit paternal property as equal to sons
2. Widows and divorced women are entitled to remarry
3. Marriageable age for girls is 18 and for boys it is 21
4. Dowry giving accepting are prohibited
5. Women are entitled to get equal wage with men for same type of work
6. Right to education is a right for the child
7. Developmental programmes of the government
SELF HELP GROUP
Who/what motivated you to become a member?
Are there any dropouts in your SHG? Reasons?
Are the attendance registers, account Books and reports properly maintained?
Are they available to any member?
Have you examined any of these during the last six months?
From where do you find money to deposit weekly?
105
What is the degree of change in decision making in family after you became member?
Who selects the beneficiary/interests for loans?
If somebody defaults in loans repayment who decides the fine or punishment?
If some problem arises in the SHG who solves it?
If the SHG ceases to exist or you leave, will you continue saving?
Have you worked together for solving community problems? Is there any change?
How much change has occurred in you regarding the following skills/ abilities?
1.
Freely and frankly speaking in SHG meetings
2.
Teaching / Training someone else
3.
Speaking during public meetings
4.
Taking up leadership positions in the SHG
5.
Writing minutes of SHG meetings
6.
Keeping of the accounts of SHG
7.
Performing bank transactions
8.
Going to government office / police station
If possible: Are you happy with your life?
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C. Photos of the villages
Bommanayakanahalli (No SHG)
* Interview with women
*Typical house
*Woman collecting water
* The well of the village
*Woman milking
*Friendly neighbors
*Coconut field
*Stall of the livestock
Source: Author
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A Chalenahalli (SHG)
*Women from the Self-Help Group
* Women during the interviews
*Coconut storage (home)
*Companions of women during the research
*Stall of the livestock
*Well in the village
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self-help groups in india: a tool for empowering rural women and

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